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

question 408

Multiple Choice

Claude's Copper Clappers sells clappers for $40 each in a competitive price-taker market. At its present rate of output, Claude's marginal cost is $40, average variable cost is $45, and average total cost is $60. 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:

Reusable Coffee Cup

A coffee cup designed to be used multiple times, promoting environmental sustainability by reducing waste.

Energy Consumption

The total amount of energy utilised by all processes and activities, often measured in terms of electricity or fuel usage.

Skylights

Windows installed in a roof or ceiling to allow natural light to enter the space below.

Natural Light

Sunlight that is utilized in buildings and homes to reduce the need for artificial lighting and to improve the well-being of occupants.