Claude's Copper Clappers Sells Clappers for $60 Each in a Perfectly

question 185

Multiple Choice

Claude's Copper Clappers sells clappers for $60 each in a perfectly competitive market.At its present level of output,Claude's marginal cost is $65,average variable cost is $25,and average total cost is $62.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)raise the price.

---

Definitions:

Auto Repairs

Services aimed at diagnosing and fixing problems related to a vehicle's performance or condition.

Gasoline

A flammable liquid derived from petroleum, used mainly as fuel in internal combustion engines.

Utility Function

A representation in economics of how a consumer ranks different bundles of goods according to the level of satisfaction or utility they provide.

Auto Repairs

Services aimed at fixing or maintaining the functional aspects of vehicles, ensuring they are safe and operational.