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...
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- Winter '08
- Supply And Demand, Brian’s Drywall, Sacramento region drywall, individual drywall contractor, dry wall