Claude's Copper Clappers Sells Clappers for $65 Each in a Perfectly

question 51

Multiple Choice

Claude's Copper Clappers sells clappers for $65 each in a perfectly competitive market.At its present level of output,Claude's marginal cost is $65,average variable cost is $45,and average total cost is $67.To maximize his profit or minimize his loss,Claude should _____

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

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Definitions:

Cultures

The shared values, customs, social behaviors, and artifacts of a group of people that differentiate them from other groups.

Need Theories

Psychological theories that suggest human behavior is motivated by the desire to fulfill specific basic needs, such as physiological, safety, social, esteem, and self-actualization needs.

Universality

The concept that certain principles, ideas, or traits are common, applicable, or beneficial across all cultures, situations, or groups.

Cultures

The shared values, beliefs, norms, and practices of a group of people that are passed down from generation to generation.