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Government regulations can increase _____, making goods and services more expensive.

a)production costs

b)revenue

c)profits

User Boeboe
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I would say production costs would be the answer
User Elie
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Production costs can be affected in several ways by the decition a government makes, since this is defined as the costs incurred in order to make/produce goods and in several parts of the process the government is involved, for example taxes and work laws.

Correct answer is A.) production costs

In a more literal example, a government can establish a law that states the hour of work in a certain part of the process of producing chocolates has to be paid at a higher rate, this will affect the overall production cost.

User Smajlo
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