Final answer:
Variable costs increase with the quantity produced, while fixed costs remain constant. Costs like average cost, average variable cost, and marginal cost are measured on a per-unit basis. Production technology refers to the methods and inputs used for producing goods or services.
Step-by-step explanation:
The costs of production that always increase with increases in the quantity produced are variable costs. Variable costs are associated with the costs of variable inputs, like labor and raw materials, which vary directly with the level of output. In contrast to fixed costs, which remain constant regardless of the amount produced, variable costs rise as more units are produced.
Average cost, average variable cost, and marginal cost are measured on a per-unit basis, while fixed costs are total costs that do not change with production levels. Marginal cost specifically refers to the cost of producing one additional unit of a product and typically shows diminishing marginal returns, meaning that as the level of output rises, marginal cost also tends to rise.
Production technology signifies the combination of inputs and processes businesses use to produce goods or services. Advances in production technology can lead to more efficient production methods, potentially lowering the average and marginal costs of production over time.