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 ?
The study singles out cash payments of up to 50, which it found to be cheaper on account of the lower average fixed costs of cash payments.
The bond rating agency recognized the town's "healthy financial position, large and wealthy tax base and a manageable debt burden with above average fixed costs."
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.
The average total cost curve represents the total of average variable and average fixed costs. Clearly, the shape of the average total cost curve is determined primarily by the shape of the average fixed cost curve.
The average fixed cost curve declines dramatically with increased farm size.
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.
For surface water, the percentage change in average fixed cost is greater than the percentage change in average variable cost for both CVP and non-CVP water districts.
Despite low metal prices, the increased production will help reduce average fixed costs, which currently account for 65% of Norilsk's total costs.
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.Farmers, who require assistance in using the data to assess their farm's performance, are strongly recommended to seek the assistance of their DARD Development Adviser, who may be contacted through the local DARD office.

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