--%>

Difference between average cost and total fixed costs

What are the difference between average cost and total fixed cost?

E

Expert

Verified

Average fixed cost is acquired by dividing total fixed cost through total output. Therefore, total fixed cost curve and average fixed cost curve are demonstrated below here:

983_Total fixed cost curve and average fixed cost curve.png

By the above graph this is clear that the total fixed cost curve is horizontal to OX axis. Conversely, the average fixed cost curve slopes by left to right. It implies as that the output raises, the average fixed cost falls.

   Related Questions in Managerial Economics

  • Q : Different between Expert opinion and

    Illustrates the different between expert opinion method and trend projection method?

  • Q : What are the important areas of

    What are the important areas of decision-making?

  • Q : Process of Screening A principal who

    A principal who checks the qualifications of a potential agent before giving the agent a contract is engaging within the process of: (i) signaling. (ii) determining an efficiency wage. (iii) predatory behavior. (iv) screening. (v) discrimination.

    Q : Illustrates the term Dumping

    Illustrates the term Dumping?

  • Q : Elasticity of demand for labor and type

    The relationship between the elasticity of demand for labor and the elasticity of demand for a specific type of output the labor produces is: (1) uniformly negative. (2) uniformly positive. (3) zero. (4) curvilinear. (5) highly variab

  • Q : HW Hello, Would you please find a small

    Hello, Would you please find a small case study in managerial economics. please I don't want the typical solution because the prof have it. thanks

  • Q : Illustrates the private cost of

    Illustrates the private cost of production?

  • Q : Amount of labor by hiring All firms

    All firms maximize profit through hiring the amount of labor where: (w) w = MRC. (x) MRP = VMP. (y) MRC = MRP. (z) MPP = MRP. I need a good answer on the topic of Economics problems. Please give me

  • Q : Price and output decisions in

    Illustrates the price and output decisions in Monopolistic Competition?

  • Q : Use of Screening Device Screening

    Screening devices used while employers try to stop adverse selection through applicants for positions do not comprise: (1) reviewing résumés to identify applicants’ qualifications. (2) needing non-compete clauses which prevent new