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Average Fixed Cost |
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Average Fixed Cost A measure of fixed costs per unit. One calculates the average fixed costs by adding up the total one spends over a period of time and dividing by the number of units. For example, if one pays $500 per month in rent and wishes to calculate the average fixed costs for a year, one divides the $6,000 one spends on rent by 12 months. Want to thank TFD for its existence? Tell a friend about us, add a link to this page, add the site to iGoogle, or visit the webmaster's page for free fun content. |
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