Unformatted text preview: (i) What is Brian’s optimum monthly quantity to produce ? (ii) If Brian has fixed costs of $15,000 / month. What is his net profit. Remember- Q is measured in 1000 units /month. (b) If the downturn in the construction industry shifts the industry quantity of dry wall demanded down by 20% at all prices. (i) How much should Brian adjust his production to cope with the downturn. (ii) Does Brian still make a net profit with this downturn ? (c ) For a 40% shift down from the base in quantity demanded, should Brian shut down his firm or continue to contract drywall ? 1...
View Full Document
This note was uploaded on 10/25/2010 for the course ARE 100A taught by Professor Constantine during the Winter '08 term at UC Davis.
- Winter '08