Average Fixed Cost always diminishes as quantity(output) increments. We realize that AFC = TFC/Q in which TFC stays fixed at each level of quantity but when Q increases, it causes a decrease in AFC. To conclude, the average fixed cost(AFC) is determined as a Total fixed production cost (TFC) divided by the amount of yield produced. At the point when the total number of units of the product expands, the average fixed cost(AFC) falls on the grounds that a similar amount of fixed costs is being spread over a bigger number of units created.