Asked by Shawntay Williams on Apr 28, 2024
Verified
Refer to Figure 8.5. If one drone is produced, total variable costs are
A) $30.
B) $40.
C) $50.
D) indeterminate from this information.
Total Variable Costs
The sum of all costs that vary with the level of output, such as materials and labor, excluding fixed costs like rent or salaries.
- Grasp the role of fixed and variable costs in determining total costs and how changes in production affect them.
Verified Answer
ZK
Zybrea KnightMay 04, 2024
Final Answer :
A
Explanation :
Total variable costs for producing one drone are $30, as indicated by the total variable cost curve at the quantity of one drone.
Learning Objectives
- Grasp the role of fixed and variable costs in determining total costs and how changes in production affect them.