A manufacturing company decides to increase production, and must hire 75 new workers. To meet this staffing goal quickly, the company finds it necessary to increase wages for entry level workers by 8%. The rising labor costs from increasing production are an example of: a) erosion cost b) sunk cost c) working capital investment d) opportunity cost

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Cost of Production

In economic theory, production costs are the costs incurred by an industrial organization when it engineers a project or provides a service that generates revenue and benefits. Labor costs, raw materials, consumable manufacturing costs, and general overhead sum up, accounting for production costs. Total cost data is calculated by combining total direct costs of materials, labor costs, and total production costs.