Econ Unit 3 FA Dummy 4, 2025-26

Which term means the overall cost spread evenly over each unit of output?

• Average Cost

• Fixed Cost

• Variable Cost

• Sunk Cost

The total cost per unit of output produced in a factory is known as:

• Average Cost

• Marginal Cost

• Total Cost

• Overhead Cost

A factory spends $10,000 to produce 500 widgets. The cost per widget is an example of:

• Average Cost

• Marginal Cost

• Fixed Cost

• Opportunity Cost

In a study where total cost rises but output doubles, the cost per unit reflects a change in:

• Marginal Cost

• Average Cost

• Fixed Cost

• Sunk Cost

If a bakery’s total cost for 200 cakes is $1,000, the measure that divides this cost per cake is called:

• Average Cost

• Marginal Cost

• Total Cost

• Variable Cost

A company wants to know how much each product costs on average after production changes. This concept is:

• Average Cost

• Fixed Cost

• Variable Cost

• Marginal Cost

What term describes the sum of fixed costs and variable costs in producing a quantity of output?

• Marginal Cost

• Total Cost

• Average Cost

• Opportunity Cost

The combined total of all fixed and variable costs required to make goods is called:

• Total Cost

• Fixed Cost

• Variable Cost

• Marginal Cost

Which term means adding fixed costs and variable costs to find the full expense of production?

• Average Cost

• Total Cost

• Marginal Cost

• Sunk Cost

The entire amount spent on fixed and variable inputs during production is known as:

• Fixed Cost

• Total Cost

• Variable Cost

• Overhead Cost