Asked • 11/10/20

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 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?

Charles W.

tutor
The AFC is the vertical distance between the ATC and the AVC. AS the firm produces more quantity the AFC continually decreases, that is why the AVC and ATC move closer together as production increases.
Report

11/10/20

1 Expert Answer

By:

Karen V. answered • 11/13/20

Tutor
5 (75)

AP Microeconomics Teacher

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