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 ?
Interestingly, a community WSS can serve much greater number of households than just twenty five and, in that case, average fixed cost would be even further lower.
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.
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?
Amortization of city debt is rapid (74% retired in 10 years) which Fitch considers prudent, but lends to an above average fixed cost burden on the budget.
While SFO has an above average fixed cost structure given its debt levels ($240 per enplaned passenger) coupled with elevated carrier concentration with United, the airport's demand profile serves as a key risk mitigant due to the high level of origination & destination (O&D) enplanements, which represents 77% of total volume.
JBS USA margins reached 6% in the third quarter of 2008, after JBS management was able to reduce average fixed cost per head by about USD48.
Preserving ample financial flexibility is imperative given the city's risk profile including its under-funded pension systems, an above average fixed cost burden with debt service above the 10% of spending policy, along with low income levels and high unemployment rates.

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