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.

average fixed cost

see AVERAGE COST ( SHORT-RUN).
References in periodicals archive ?
In addition to enterprise gross margin data, the booklet contains information on hay, silage and grazing costs and average fixed costs by type of farm.
This graph combines with marginal costs (MC), average total costs (ATC), average variable costs (AVC) and average fixed costs (AFC) as seen in Figure 3.
Two custom harvest firms will most often have different fixed cost totals, and in turn, different average fixed costs per acre harvested, even if they harvest the same number of acres per year.
Financial issues include the hypothesis that purchasing new equipment to produce large bales increases the harvester's average fixed cost per ton.
Thus, the impact of higher power rates is reflected by an increase in average fixed costs relative to average variable costs for the region as a whole.
For groundwater, the percentage change in average variable costs is less than the percentage change in average fixed costs for both CVP and non-CVP water districts.
Other credit concerns include above average wholesale and retail rates at OPC and the members, respectively, and a high concentration of nuclear generation, which accounts for most of OPC's above average fixed costs.
Risks include member systems that have above average retail rates and a generation mix that relies heavily on nuclear power and contributes to OPC's above average fixed costs.

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