Claude's Copper Clappers Sells Clappers for $40 Each in a Perfectly

question 227

Multiple Choice

Claude's Copper Clappers sells clappers for $40 each in a perfectly competitive market.At its present rate of output, Claude's marginal cost is $39, average variable cost is $45, and average total cost is $60.To improve his profit/loss situation, Claude should

• A)increase output
• B)reduce output but not to zero
• C)maintain the present rate of output
• D)shut down
• E)raise the price

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Definitions:

Physiological Differences

Variations in the functional and biological processes of organisms, often used to explain unique traits and behaviors.

Affection

A feeling of fondness or liking.

Contact Motive

The inherent desire or drive in individuals to seek out social interactions and establish connections with others.

Cuddling

The act of holding someone closely in one's arms as a way of showing affection, which can increase oxytocin levels and reduce stress.