The Ability for a Manager to Think in Abstract Terms

question 83

Multiple Choice

The ability for a manager to think in abstract terms while envisioning the "big picture" falls into the category of _____, deemed an important management trait.

• A) interpersonal skills
• B) conceptual skills
• C) leading and motivating functions
• D) mechanical skills
• E) controlling functions

---

Definitions:

Average Variable Cost

The total variable cost of producing a good divided by the quantity of the good produced, representing the variable cost per unit.

Average Total Costs

The total costs of production (fixed plus variable) divided by the total quantity of output produced, expressing the cost on a per-unit basis.

Economies of Scale

The savings that organizations achieve through their size of operation, where the expense per produced unit consistently decreases with an upscaling in operation.

Diseconomies of Scale

The phenomenon where production costs per unit increase as a firm's size or output increases beyond a certain point.