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

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.