Fifty-Two Year Old Nicolas Worked as an Operations Manager in Austell

question 30

Multiple Choice

Fifty-two year old Nicolas worked as an operations manager in Austell steel plant. The working conditions at Austell were quite hazardous and as a result, Nicolas was grievously injured while performing his job. Due to the key responsibilities associated with Nicolas' role, the employer asked him to step down from his position to be replaced by his thirty-eight year old team member. In this case, the employer has the burden to prove that removal of Nicolas is:

• A)in favor of company.
• B)based upon company policy.
• C)a reasonable factor other than age.
• D)lawful at the discretion of the organization.

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Definitions:

Diseconomies of Scale

Diseconomies of scale occur when a company or business grows so large that the costs per unit increase, leading to decreased efficiency.

Diminishing Marginal Returns

A principle stating that as additional units of a variable input are added to a fixed input, the additional output produced from each new unit will eventually decrease.

Normal Profit

The minimum level of profit needed for a company to remain competitive in the market, covering its opportunity costs.

Entrepreneur's Potential Earnings

The hypothetical income an entrepreneur could earn, considering the risks and opportunities associated with starting and running a business.