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
D
You might also like to view...
In the figure above, D0 is the demand for labor curve. Imposing a minimum wage of $6 per hour will initially
A) increase employment from 20 to 40 million hours per year. B) increase employment from 30 to 40 million hours per year. C) decrease employment from 40 to 20 million hours per year. D) decrease employment from 30 to 20 million hours per year.
How is dollarization different from monetary union?
What will be an ideal response?
Which of the following statements is correct, when the exchange rate changes from €2/$ to €1.5/$?
a. The euro appreciates and the dollar depreciates. b. The euro (€) depreciates. c. The dollar ($) appreciates. d. Both the euro and the dollar appreciate. e. The euro depreciates and the dollar appreciates.
How does a better technology affect a producer who uses this technology?
a. It keeps production costs steady. b. It reduces production costs. c. It lessens the seller’s willingness to supply the good. d. It lowers expectations about the good.