The government often enacts regulation that benefits producers because
a. the government seeks to regulate in the best interest of the public
b. consumers have less information than producers and therefore seek government protection
c. consumers have a strong interest in matters that affect their standard of living
d. producers have a strong interest in matters that affect their specialized source of income
e. producers seek to act in the best interest of the public
Question 2
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
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