Stephen HGrabowski Sustained Injuries When His Fellow Employees,William Mangler,David Smith,and Joseph

question 77

Multiple Choice

Stephen H.Grabowski sustained injuries when his fellow employees,William Mangler,David Smith,and Joseph Ziemba,detained Grabowski in a bathroom,brought him to the ground,and wrapped him,from ankles to shoulders,in duct tape.Grabowski suffered both physical injuries,which required surgery on his lower back and right knee,and post-traumatic stress,which required counseling.Grabowski has since received over $300,000 in workers' compensation for his injuries.He has brought suit against the three men to recover for the damages he has experienced beyond what worker's compensation covered.Which of the following is correct?

• A)There can be no recovery from third parties when there is a worker's compensation claim.
• B)There can be no recovery for horseplay in the workplace, even under worker's compensation.
• C)If there is recovery, Grabowski must first reimburse the worker's compensation fund for payments received to date.
• D)There is no third-party liability in workplace injuries, regardless of how they occurred.

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Definitions:

Profit-Maximizing

The process by which a company determines the price and output level that returns the highest profit.

Loss-Minimizing

A strategy or position where a firm aims to reduce its losses to the lowest possible level under adverse conditions, often by adjusting production.

Zero Economic Profits

Zero economic profits occur in a competitive equilibrium when firms earn just enough revenue to cover their total costs, including the opportunity costs.

Short Run

A period of time during which at least one of a firm's inputs is fixed, limiting its ability to increase production.