Thus average fixed cost is the fixed cost per unit of output. Suppose for a firm the total fixed cost is Rs. 2,000 when output is 100 units, average fixed cost (AFC) will be Rs. 2,000/100 = Rs. 20 and when output is expanded to 200 units, average fixed cost will be Rs. 2,000/200 = Rs.
On July 3, 1886, mechanical engineer Karl Benz drove the first automobile in Mannheim, Germany, reaching a top speed of 16 km/h (10 mph). The automobile was powered by a 0.75-hp one-cylinder four-stroke gasoline engine.
Facing two electric cars and three gasoline-powered Benz cars from Germany, Frank Duryea raced to victory, finishing the race in just over 10 hours at an average of 7.3 miles per hour. The next year, the brothers started the Duryea Motor Wagon Company in Springfield,the first American car company.