Red Ink Systems Wants to Develop a Zero Tolerance Policy

question 26

Multiple Choice

Red Ink Systems wants to develop a zero tolerance policy on sexual harassment.The company's policy should include a provision to:

• A) relocate a sexual harassment claimant to a different office.
• B) limit training about sexual harassment to lower-level management.
• C) terminate any employee accused of sexual harassment without wasting time on investigation.
• D) investigate all sexual harassment claims and circulate information only on a need-to-know basis.

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Definitions:

Short-run Cost Function

The relationship between the cost of production and the level of output when at least one input is fixed in the short term.

Long-run Cost Function

A relationship that shows the lowest possible cost at which a firm can produce any given level of output when all inputs, including capital, are variable.

Cost-output Elasticity

A measure of how responsive the cost of production is to a change in the output level.

Marginal Cost

The added expense incurred upon producing one further unit of a good or service.