Distinguish between AFV and AVC.

Distinguish between AFV and AVC.

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1. The average fixed cost can be defined as the fixed cost per unit of output. It is a ratio of total fixed cost to the total output.

   On the other hand the output average cost can be defined as the variable cost per unit of output. It is the ratio of total variable cost to the total output. It can be computed by dividing the total variable cost by the total output.

   

2. AFC is rectangular Hyperbola on the other hand AVC is U shape

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