Average Fixed Cost (AFC): Total fixed cost (TFC) divided…

  Average Fixed Cost (AFC): Total fixed cost (TFC) divided by quantity of output  Average Variable Cost (AVC): Total variable cost (TVC) divided by quantity of output Average Total Cost (ATC): Total cost (TC) divided by quantity of output MC indicates marginal cost.  Based on the above plots, (1)_____________ continuously declines as the quantity of output rises, because (2)____________ is constant.