When price is above marginal cost,selling one more unit of output at the going price will increase profit.What is this concept called

Question

Quizplus · Accepted Answer

The concept described in the question is known as the output effect, which refers to the increase in profit that results from selling one more unit of output at a price that is higher than the marginal cost of producing that unit. When price exceeds marginal cost, each additional unit sold contributes more to profit than it costs to produce, resulting in a positive output effect. The other answer choices (A, B, and D) do not accurately describe this concept.

When Price Is Above Marginal Cost,selling One More Unit of Output