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How do you find average fixed cost from output?The average fixed cost (AFC) is the fixed cost that does not change with the change in the number of goods and services produced by a company. To put it in a nutshell, the average fixed cost (AFC) is the fixed cost per unit and is calculated by dividing the total fixed cost by the output level.
How do you find the average fixed cost of two units of output?The average fixed cost of a product can be calculated by dividing the total fixed costs by the number of production units over a fixed period. The division method is useful if you only want to determine how your fixed costs affect the fixed cost per unit.
When a firm produces 4 units of output Its total cost is 40 and total variable cost is 20 calculate average fixed cost?20 . So total fixed cost = Rs. 20 multiplied by 4 , that is , Rs. 80 .
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