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.
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average fixed costsee AVERAGE COST ( SHORT-RUN).
Collins Dictionary of Economics, 4th ed. © C. Pass, B. Lowes, L. Davies 2005