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Reference - Dogs and Formals. Paul owns a dog grooming business and needs patient people to work there. He gives all applicants a test he obtained from a management firm that has been proven to measure psychological traits such as patience. Penny alleges sex discrimination after she fails the test miserably and Paul refuses to hire her. Paul tells her that there is no way he is giving her a dime because he is entitled to protect his client's dogs. Upon learning that her state lacked a state office representing the Equal Opportunity Commission, Penny immediately sues him in federal court alleging a violation of Title VII. Paul, who is getting tired of the dog grooming business, also opens a new formal wear shop and needs to hire employees there as well. He wants to appeal to high-school and college age young ladies attending proms and formals. Paul decides that he does not want older sales clerks to assist in choosing formal dresses. He only wants young, attractive ones. Paul runs an ad in the local paper seeking applicants for sales clerks and stating that a qualification for the job is computer training while in high school. Tina, age 60, applies and tells Paul that while she sees no reason that computer training should be required, she attended computer training in adult education and has excellent computer as well as sales skills. Paul refuses to hire her telling her that unless he follows the ad, he may be seen as practicing discrimination. Deciding that formal wear is more trouble than dogs, Paul shuts down the formal wear store. Which of the following is true regarding Penny's action in federal court?
ATC Curve
A graphical representation of the average total cost of producing various quantities of output, showing how unit costs change with changes in output level.
AVC Curve
A graph that represents the average variable cost of producing each quantity of output, showing how these costs vary with changes in output levels.
Short-Run Situation
A period in which at least one of a firm's inputs is fixed, limiting its capacity to adjust output levels quickly.
Marginal Revenue
The increase in revenue a business gets from the sale of an extra unit of a product or service.
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