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 ?
Interestingly, a community WSS can serve much greater number of households than just twenty five and, in that case, average fixed cost would be even further lower.
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.
If they are to be cost-based, then should they be based on average fixed cost, marginal cost, or average fixed cost/marginal cost plus opportunity cost?

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