If a company notices that its marginal cost of production increases significantly after producing 100 units, which of the following is the most likely underlying cause?

When a company produces goods, the marginal cost is the extra cost of making one more unit. If the marginal cost increases significantly after producing 100 units, it usually means that the company is facing limitations or inefficiencies in its production process. For example, after reaching 100 units, the factory might need to hire more workers or run extra shifts, which increases costs due to overtime pay or additional labor. This could also happen if the machinery is being overused and requires more maintenance or repair, leading to higher costs. Therefore, the underlying cause is often related to the company's capacity or efficiency limits being reached as production scales up.