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 fixed 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 fixed costs are
A) $10. 
B) $20. 
C) $25. 
D) $50.

Quizplus · Accepted Answer

Average fixed costs (AFC) are calculated by dividing total fixed costs by the quantity of output. If two drones are produced and the total fixed costs are $50, then AFC = $50 / 2 = $25.

Refer to the Short-Run Information Provided in Figure 8