Suppose an opal-mining firm notices that the price of opals is above marginal cost.Selling one more unit of opals at the going price also increases profit.This concept is known as the:
A)income effect
B)price effect
C)opal effect
D)output effect

Question

Quizplus · Accepted Answer

The concept described in the scenario is known as the output effect, which occurs when selling an additional unit of product at the going price increases profit. The other options (income effect, price effect, opal effect) do not accurately describe this situation.

Suppose an Opal-Mining Firm Notices That the Price of Opals