Refer to the short-run information provided in Figure 8.5 below to answer the question(s) that follow

Figure 8.5
-Refer to Figure 8.5. If four drones are produced, average fixed costs are
A) $5.
B) $10.
C) $12.50.
D) $17.50.

Question

Refer to the short-run information provided in Figure 8.5 below to answer the question(s) that follow

Figure 8.5
-Refer to Figure 8.5. If four drones are produced, average fixed costs are
A) $5. 
B) $10. 
C) $12.50. 
D) $17.50.

Quizplus · Accepted Answer

At four drones produced, the total fixed cost (which does not change with the level of production) must be divided by the number of drones to find the average fixed cost. Without the specific details from Figure 8.5, the correct answer typically involves dividing the total fixed costs by the number of units produced (4 in this case). The choice provided as correct, $12.50, suggests a total fixed cost of $50 ($12.50 * 4 = $50). This is a general explanation based on how average fixed costs are calculated; the exact figure would depend on the total fixed costs given in the figure.

Refer to the Short-Run Information Provided in Figure 8