Answer:
C. the prices the firm pays for labor, material and other variable inputs will increase.
Explanation:
Marginal cost, also called an incremental cost. It is the extra cost of increasing output by one more unit of variables (capital or labour in production).
Marginal cost is the cost difference in producing an additional unit of an enterprise's output. For example, if the cost of producing 20 carton of cheese is $5 and it cost $6 to produce 21 carton of the same cheese, the $1 difrerence in cost is known S Marginal Cost
It is illustrated as below
MC= Changes in Total Cost / Changes in output
Where Total cost is the total price of product produced