**Average** **fixed** **cost** = **average** total **cost** - **average** variable **cost**.

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**fc-smoke">Feb 3, 2023 · How to calculate fixed cost. . **

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**- Average fixed cost per unit fall as the level of activity rises. What are variable costs? Variable costs: A cost that depends on the level of production chosen. . **

**[5] The rationale for the rule is straightforward. **

**According to my economics course, average variable cost is of the same structure as average total cost, in that they both fall to a minimum before they rise. class=" fc-falcon">False. are calculated by dividing the appropriate total cost by the number of units of output (Q) produced. **

**Average fixed cost is. **.

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Total **cost** (TC) of a firm are either **fixed** (FC) or variable (VC).

- The correct option is A. [5] The rationale for the rule is straightforward.

. Neither A) nor B) 2.

Total variable **cost** = 30,000 + 3000 = 33,000.

Solution.

. a. Average Fixed Cost =** $0. **

**33 * 2,000. a. 25, then total cost at this output level is: A) $93. (. False. ** Now using both these numbers we will calculate the total fixed costs by subtracting the variable cost from the.

**Average fixed costs** are found by dividing total **fixed costs** by output.

ATC = AFC + AVC AFC = FC/Q AVC = VC/Q In the case of Bob’s Bakery, we said earlier that the firm can produce 100 loaves with FC = 40, VC = 500, and TC = 540. .

class=" fc-falcon">Expert Answer.

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58.

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**Average** **fixed** **cost** = 0.