Average fixed cost is

  • A Average total cost less the sum of average variable cost
  • B Half the sum of all costs
  • C Total fixed cost divided by the level of output
  • D Total fixed cost plus marginal cost
jamb 1987economics

The correct answer is C. Total fixed cost divided by the level of output

Average fixed cost (AFC) is calculated by dividing the total fixed cost (TFC) by the level of output (Q).

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