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.
JBS USA margins reached 6% in the third quarter of 2008, after JBS management was able to reduce average fixed cost per head by about USD48.
Preserving ample financial flexibility is imperative given the city's risk profile including its under-funded pension systems, an above average fixed cost burden with debt service above the 10% of spending policy, along with low income levels and high unemployment rates.
By locking into the average fixed cost, Pacific Gas and Electric Company will help protect its customers from the price fluctuations in the wholesale market.
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.

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