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.
The average total cost curve represents the total of average variable and average fixed costs.
The average fixed cost curve declines dramatically with increased farm size.
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.