Refer to the Short-Run Information Provided in Figure 8

question 287

Multiple Choice

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, total variable costs are

• A) $30.
• B) $40.
• C) $50.
• D) indeterminate from this information.

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Definitions:

Social Security Withholding

The process by which employers deduct a portion of an employee's salary to contribute to the Social Security program.

Federal Income Tax Withholding

The amount of federal income tax withheld from an employee's paycheck, based on their earnings and tax filing status.

Net Pay

The amount of money remaining from an employee's gross pay after deductions like taxes, insurance premiums, and retirement contributions have been subtracted.

FICA Tax

A U.S. federal payroll (or employment) tax imposed on both employees and employers to fund Social Security and Medicare—federal programs that provide benefits for retirees, disabled people, and children of deceased workers.