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 six drones are produced, average variable costs are
A) $2.50.
B) $5.
C) $10.
D) $13.33.

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 six drones are produced, average variable costs are
A) $2.50. 
B) $5. 
C) $10. 
D) $13.33.

Quizplus · Accepted Answer

Average variable cost is total variable cost divided by the quantity of output. At a quantity of six drones, total variable cost is $80. Therefore, average variable cost is $80 / 6 = $13.33.

Refer to the Short-Run Information Provided in Figure 8