Question
How can you calculate the average fixed cost?

Answer

The average fixed cost is the fixed cost per unit of output. It is obtained by dividing the total fixed cost by the quantity of output.
$\mathrm{AFC}=\frac{T F C}{Q}$
(Eg.) If TFC is 100;
Q = 10 Find AFC
$\mathrm{AFC}=\frac{T F C}{Q}$
$=\frac{1000}{10}$
$=\frac{1000}{10}$

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