Author Question: Claude's Copper Clappers sells clappers for 65 each in a perfectly competitive market. At its ... (Read 50 times)

savannahhooper · **on:** Jun 30, 2018

Claude's Copper Clappers sells clappers for 65 each in a perfectly competitive market. At its present rate 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. maintain the present rate of output
d. shut down
e. raise the price

Question 2

If the marginal cost curve shifts upward, a profit-maximizing, nondiscriminating monopolist is likely to respond in the short run by
a. raising price and increasing output
b. raising price and decreasing output
c. keeping price constant and increasing output
d. reducing price and increasing output
e. shutting down