A sharp increase in production costs will serve as a negative incentives to producers.
Who are producers?
Producers are individuals or institutions who are involved in production of goods for the general use of the society.
Incentives are those factors that encourage produce to keep producing goods.
Some positive incentives for producers include:
- a chance to make more money a special sale at a department store
- a coupon clipped from a newspaper
A sharp increase in production costs will serve as a negative incentives to producers.
Learn more about producers at: https://brainly.com/question/8242080
