Final answer:
Average cost, average variable cost, variable costs, and marginal cost are measured on a per-unit basis, whereas fixed costs are total amounts that can be spread over units produced. Production technology is the methods and equipment used for manufacturing goods and services. 'Spreading the overhead' means distributing fixed costs over a larger number of units, reducing the fixed cost per unit as production increases.
Step-by-step explanation:
The question pertains to the types of costs involved in manufacturing and how they are measured on a per-unit basis. The specific costs mentioned include fixed costs, average cost, average variable cost, variable costs, and marginal cost. Additionally, it asks for the definition of production technology.
Which costs are measured on a per-unit basis?
Out of the costs mentioned, average cost, average variable cost, variable costs, and marginal cost are typically measured on a per-unit basis. Fixed costs represent the overhead, which does not change with the level of production and can be spread over the units produced, thus giving us the average fixed cost per unit.
What is production technology?
Production technology refers to the methods, processes, and equipment used to produce goods and services. It encompasses the technical and mechanical aspects of manufacturing, which impact the efficiency and cost structure of production.
When it comes to understanding the concept of 'spreading the overhead,' dividing the fixed cost by the quantity of output produces the average fixed cost curve. This indicates how the fixed cost per unit decreases as production increases, demonstrating the economy of scale.