What happens to the marginal cost of producing an additional unit when variable costs increase?

Marginal cost is the cost of producing one more unit of a good or service. When variable costs increase, the marginal cost also tends to increase because variable costs are directly tied to the production level. For example, if a factory needs to pay more for materials to make one additional toy, the cost of producing that toy rises. Therefore, if the variable costs of materials go up, the cost of making each extra toy will also be higher. This means that businesses need to consider these increased costs when deciding how many units to produce.