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 one drone is produced, average fixed costs are
A) $0.
B) $50.
C) $80.
D) indeterminate from this information.

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 one drone is produced, average fixed costs are
A) $0. 
B) $50. 
C) $80. 
D) indeterminate from this information.

Quizplus · Accepted Answer

Average fixed costs (AFC) are calculated by dividing the total fixed costs by the quantity of output produced. From the information given, if one drone is produced, the total fixed costs (which do not change with the level of output) would be divided by 1. Since the specific fixed costs are not provided in the question, we assume it's based on standard economic principles where fixed costs are spread over the units produced. Without the figure, we can deduce that if producing one drone incurs any fixed cost, dividing that cost by one will give the cost itself as the average fixed cost per unit. However, the correct answer is inferred based on the options provided, assuming some fixed cost is involved in the production of a drone.

Refer to the Short-Run Information Provided in Figure 8