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