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 two drones are produced, average variable costs are
A) $10.
B) $20.
C) $25.
D) $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 two drones are produced, average variable costs are
A) $10. 
B) $20. 
C) $25. 
D) $50.

Quizplus · Accepted Answer

Average variable cost is calculated by dividing total variable cost by the quantity of output. If two drones are produced and the total variable cost is $50, then the average variable cost is $25 ($50/2).

Refer to the Short-Run Information Provided in Figure 8