Is the average fixed cost per unit of output produced.
Below is an illustrated example of how to calculate the AFC for different levels of output for a hypothetical firm. These points can then be used to map out the AFC curve for this firm.
Is the average fixed cost per unit of output produced.
Below is an illustrated example of how to calculate the AFC for different levels of output for a hypothetical firm. These points can then be used to map out the AFC curve for this firm.