When Is an Employer Required to Prove a Bona Fide

question 1

Essay

When is an employer required to prove a bona fide occupational qualification? Explain with an example.

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Definitions:

Plant Size

The physical capacity or output potential of a manufacturing or production facility.

Implicit Cost

The opportunity cost of using resources already owned by the firm for its current purpose, rather than their next best alternative use.

Economic Profits

The surplus remaining after total costs (both explicit and implicit) are subtracted from total revenues, often indicating the financial health and efficiency of a company.

Long-Run Average Cost

The average cost per unit of output where all inputs, including capital, are variable over time, reflecting economies or diseconomies of scale.