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, total variable costs are
A) $17.50.
B) $20.
C) $70.
D) $120.

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, total variable costs are
A) $17.50. 
B) $20. 
C) $70. 
D) $120.

Quizplus · Accepted Answer

Total variable costs refer to the costs that vary with the level of output. If the cost for producing four drones is $70, it means that as the number of drones produced increases, the total variable costs increase accordingly. This choice correctly reflects the concept of variable costs in relation to the production of drones.

Refer to the Short-Run Information Provided in Figure 8