How can you tell what a firm's AFC (average fixed cost) is when given a graph showing ATC (average total cost) and AVC (average variable cost)?

Question

How can you tell what a firm's AFC (average fixed cost) is when given a graph showing ATC (average total cost) and AVC (average variable cost)?

How can you find AFC and FC given a cost structure facing a specific firm?

Answer 1

If you have the ATC and the AVC, the difference is the AFC. To determine the Fixed Cost, multiply the AFC by the quantity that correlates with your measurement of the ATC and AVC.

Note, if you are given total cost information, at a quantity of 0, you can see the Fixed Cost. It will equal the Total Cost.