![Economics 101: Average Fixed Cost](https://i0.wp.com/sterlingterrell.net/wp-content/uploads/2016/11/1-10.jpg?fit=638%2C422&ssl=1)
[This is part of the series: The Complete Guide To Economics 101.]
What is average fixed cost?
Average Fixed Cost is total fixed costs divided by output or quantity.
Formally:
Average Fixed Cost = Total Fixed Cost / Quantity Produced
This is where:
Profit = Total Revenue – Total Cost
And:
Total Cost = Total Fixed Cost + Total Variable Cost