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Gaurav Seth 6 years, 8 months ago
Fixed cost is the sum of all expenditures incurred to acquire a fixed asset. It does not change with an increase or decrease in the amount of goods or services produced or sold. Like - Purchase of plant & machinery.
Average fixed cost is the fixed cost per unit of output. Average fixed cost curve slopes downward to the right. It shows that AFC decreases as output increases. It is a rectangular hyperbola curve. It means that the product of AFC and output is equal to TFC which remains constant at all levels of output.
TFC = AFC * Q
Therefore, 

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Harika Muskan 6 years, 8 months ago
1Thank You