Which of the following would most likely occur if a firm exceeded its optimal production volume?

A) Unit costs would decrease with each additional unit.
B) Development costs would decrease unit costs.
C) Fixed costs would increase unit costs.
D) Unit costs would equal fixed costs.

Optimal Production Volume

The quantity of goods that a company should produce to minimize costs and maximize efficiency, profitability, or both.

Unit Costs

The cost incurred to produce, store, or acquire one unit of a product or service.

Fixed Costs

Costs that do not vary with the level of production or sales, such as rent, salaries, and insurance, providing a basis for budgeting and financial planning.