Average fixed cost
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Average fixed cost (AFC) is an economics term used to describe the total fixed costs (TFC) divided by the quantity (Q) of units produced.
Average fixed cost is a per-unit measure of fixed costs. As the total number of goods produced increases, the average fixed cost decreases because the same amount of fixed costs are being spread over a larger number of units.
Average variable cost plus average fixed cost equals average total cost.
ATC = AVC + AFC
