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
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