One explanation for why production costs tend to rise as output increases is that producers:
A) May have to pay overtime wages to workers.
B) May decide to lay-off workers.
C) Will pay lower prices for necessary inputs.
D) Will lower base wages to workers.

Question

Quizplus · Accepted Answer

When output increases, producers may have to increase their production hours and pay their workers overtime wages, which can increase production costs.

One Explanation for Why Production Costs Tend to Rise as Output