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David Is an Engineer Who Considers Himself a Humorist and a "Modern-Day

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David is an engineer who considers himself a humorist and a "modern-day Mark Twain." He collects humorous emails from friends throughout the world using his computer at work. Much of this collection is composed of jokes regarding the prime minister, religious leaders, and women. So far, no one at his all-male workplace has complained about his hobby, and during their breaks, co-workers frequently pop into David's cubicle to ask him for the best joke of the day. Which of the following perspectives should HR take on this situation?


Definitions:

Fixed Costs

Expenses that do not change with the level of production or sales, such as rent, salaries, and insurance premiums.

Law Of Diminishing Returns

An economic principle stating that if one input in the production of a commodity is increased while all other inputs are held fixed, a point will eventually be reached at which additions of the input yield progressively smaller, or diminishing, increases in output.

Fixed Factor

A resource in the production process that remains constant, regardless of the level of output or production over a certain time period.

Total Product Curve

A graphical representation showing the output of a firm in relation to a single input while holding other inputs constant.

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