Aziz Is a Very Low-Skill Manager

question 40

Multiple Choice

Aziz is a very low-skill manager. He thinks he is actually quite a good manager. According to the Dunning-Kruger effect, what is the MOST LIKELY response Aziz will have when he receives feedback about his lack of management skills?

• A)He will be embarrassed by this feedback, and will be motivated to improve.
• B)He will not be interested in this feedback, and will not work on improving.
• C)He will recognize that his evaluations have been wrong, and will ask for additional training.
• D)He will be motivated to improve, but will be unlikely to be able to change his performance.

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Definitions:

Average Variable Cost

The cost per unit of production that varies with the level of output, calculated by dividing the total variable costs by the number of units produced.

Variable Costs

Expenses that change in proportion to the activity of a business, such as costs for raw materials or production inputs.

Fixed Costs

Costs that do not vary with the level of production or sales, such as rent, salaries, and insurance premiums.

Marginal Revenue

The additional income generated from selling one more unit of a good or service.