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

question 96

Multiple Choice

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

• A)increase output.
• B)reduce output but not to zero.
• C)continue to produce the present level of output.
• D)shut down.
• E)increase the price.