--%>
Assignment Help - homework help

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 : Income effect of increase wage When the

    When the income effect of a wage raise is more powerful than the substitution effect, in that case the:  (i) labor supply curve will be “backward bending.” (ii) unemployment rate will rise since more people will be av

    		•
  • Q : Initially purely competitive labor

    When this purely competitive labor market is firstly into equilibrium at D0L, S0L, raise in labor productivity will result within equilibrium being attained at: (w) D0L, S0L. (x) D1L, S0L

    		•
  • Q : Elasticity of the supply possible

    When Chandra and Morgan are identically skilled and every can decide the number of hours she works as: (w) the elasticity of Morgan’s labor supply exceeds the elasticity of supply for Chandra’s labor at each possible quantity of labor. (x) Morgan’s i

    		•
  • Q : What are the types of business cycle

    What are the types of business cycle?

    		•
  • Q : Categorized the Positive income

    Categorized the Positive income Elasticity?

    		•
  • Q : Tutorial 7. The San Diego Zoo is

    7. The San Diego Zoo is contemplating a stuffed panda bear advertising promotion. Annualized sales data from local shops marketing the "Can't Bear it When You're Away" bear indicate that: Q = 50,000 - 1,000P where Q is Panda bear sales and P is price. A. How many pandas could the zoo sell at $30

    		•
  • Q : States the implicit cost concept briefly

    States the implicit cost concept briefly.

    		•
  • Q : Differences between Sunk Cost and

    Illustrates the differences between Sunk Cost and Incremental cost?

    		•
  • Q : Wage Rates and Opportunity Costs

    Reasons why workers are often paid more than they could make in their best alternative positions do not include: (1) human capital valued by many firms. (2) membership in a union along with a labor contract. (3) holding a minimum wage job when most unskilled workers a

    		•
  • Q : Explain the term Production function

    Explain the term Production function.

    		•