Which of the Following Is a Common Type of Rating

question 50

Multiple Choice

Which of the following is a common type of rating error that managers are prone to in the performance appraisal process?

• A)standard deviation  
• B)descriptive bias error  
• C)80/20 error  
• D)central tendency error

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Definitions:

Long-run Average Total Cost

The average cost per unit of output over the long term, where all inputs are considered variable.

Output Q₀

The quantity of goods or services produced in a given period of time, denoted as Q₀ to specify a particular amount.

Diseconomies of Scale

The phenomenon where, as a firm expands, its costs start increasing per unit of output, usually due to inefficiencies and management challenges that arise with size.

Diminishing Returns

A principle stating that as investment in a particular area increases, the rate of profit from that investment, after a certain point, cannot continue to increase and may decrease.