On the graph to the right we pick some level of output, Q1 and find the vertical distance between the ATC and AVC curves, in this case ATC1 - AVC1, so Fixed Cost is equal to (ATC1 - AVC1) x Q1. If we show the AFC curve Fixed Cost can also be computed as AFC1 x Q1. Remember that Fixed Cost doesn't vary with output so we will find the same size area no matter what level of output we chose.
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