Which of the following is a potential cost of increasing productivity for firms?

Choosing greater unemployment due to capital over labor substitution as a cost of increasing productivity is accurate because when firms invest in technology to enhance productivity, they often automate processes that were previously carried out by human labor. This shift means that fewer workers are needed to produce the same output, leading to potential job losses. While increased productivity can lead to lower costs and higher profits for the business, the social consequence of this technological advancement may result in higher unemployment rates, particularly in sectors where labor-intensive jobs are replaced by machines or automated systems.

The other options do not represent the same kind of cost impact. Higher investment in technology can be an upfront cost but is generally seen as a necessary investment to achieve greater efficiencies and productivity. Increased competition may lead to market share growth rather than being a cost; it often stimulates innovation and benefits consumers. Lower average costs are typically a positive outcome of increased productivity rather than a cost, as they can enable firms to offer lower prices or maintain higher profit margins.