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

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 $25,and average total cost is $45.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.