AVERAGE FIXED COST CURVE: A curve that graphically represents the relation between average fixed cost incurred by a firm in the short-run product of a good or service and the quantity produced. This curve is constructed to capture the relation between average fixed cost and the level of output, holding other variables, like technology and resource prices, constant. The average fixed cost curve is one the three average curves. The other two are average total cost curve and average variable cost curve. See also | average fixed cost | curve | short-run production | fixed cost | total fixed cost | average variable cost curve | average total cost curve | marginal cost | fixed input | total cost | technology | resource prices |
