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 seven drones are produced, average fixed costs are
A) $7.14.
B) $14.29.
C) $20.
D) $21.43.

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 seven drones are produced, average fixed costs are
A) $7.14. 
B) $14.29. 
C) $20. 
D) $21.43.

Quizplus · Accepted Answer

Average fixed costs are total fixed costs divided by the number of units produced. In this case, total fixed costs are $140 and seven drones are produced, so average fixed costs are $140 / 7 = $20.

Refer to the Short-Run Information Provided in Figure 8