Go Orange Electronics Has Been Manufacturing Computers Since 1979

question 29

Multiple Choice

Go Orange Electronics has been manufacturing computers since 1979. It employs approximately 2700 employees. In 1987, the company's EEO Department advised management that 97% of the company's supervisors were white, although the company's workforce was 38% other than white. The company decided to implement a voluntary affirmative action plan which would reserve 25% of each supervisory training class for blacks and other minorities until such time as the percentage of minorities that were supervisors was representative of the available minorities in the local labor force.

• A) this affirmative action plan is illegal because it sets a quota for the number of minorities allowed in the class.
• B) this affirmative action plan is illegal because it discriminates against white men.
• C) this affirmative action plan is legal because it is temporary, doesn't unnecessarily infringe on the rights of white employees, and is designed to eliminate the racial imbalance in supervisory positions.
• D) this affirmative action plan is legal because it only sets aside 25% of the class for minorities.

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Definitions:

Average Variable Cost

The cost per unit of output, excluding fixed costs, calculated by dividing total variable costs by the number of units produced.

Marginal Cost

The expenditure involved in creating one more unit of a product or service.

Average Variable Cost

The cost per unit of producing additional units, excluding fixed costs, and is calculated by dividing total variable costs by the quantity of output.

Total Costs

The complete sum of all expenses a business incurs to produce its goods or services, including both fixed and variable costs.