What happens to the marginal cost when a company increases its production level beyond the optimal point?

When a company increases its production level beyond the optimal point, the marginal cost typically rises. Marginal cost is the cost of producing one additional unit of a product. When production goes beyond the optimal level, the company may face challenges like using less efficient equipment or needing to pay overtime wages, which can increase costs. For example, if a factory is running at full capacity and decides to produce more, it might have to hire extra workers at a higher wage, raising the cost of each new item produced. Therefore, producing too much can lead to higher costs that might not be worth the extra output.