If ball-bearing producers support proposed regulation of their industry, then it is likely that
a. ball-bearing prices will decrease under regulation
b. profits of firms in the ball-bearing industry will decrease after regulation
c. ball-bearing producers are concerned about the best interests of the public
d. ball-bearing producers will not attempt to influence the adoption of the regulation
e. consumers of ball-bearings will suffer from the proposed regulation
Question 2
Claude's Copper Clappers sells clappers for 60 each in a perfectly competitive market. At its present rate of output, Claude's marginal cost is 65, average variable cost is 25, and average total cost is 62 . 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
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