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 Figure 8.5. If seven drones are produced, average fixed costs areA)  $7.14.B)  $14.29.C)  $20.D)  $21.43.

Francisco Cartagena Bracamonte · Accepted Answer

Final Answer : A, Explanation :  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 Figure 8.5. If seven drones are produced, average fixed costs are

A) $7.14.
B) $14.29.
C) $20.
D) $21.43.

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