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 ?
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.
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.
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.
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?
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."

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