This Is A Question For My Macroeconomics Class ...

[Bronson]

This is a question for my macroeconomics class about the redstone clayworks company. The question asks what if nancy pelosi declares that claypits causes global warming, demand for the pits shrink substantially in the U.S.(especially in California). Firepit prices fall worldwide to $65 dollars. Now the manager of redstone should produce how many units.

[joachim]

You haven't given the information we'll need to give you a considered answer. Here is the information we'll need: annual sales volume, price per unit, actual overhead cost, number of employees and their wages, and fixed ongoing expenses. The rest we can derive.

[Bundy]

You need a formula for profit(gross sales minus costs) as a function of output.  Find where it has a zero first derivative and a negative second derivative.

[Honovi]

I found the spreadsheet question on the Internet.  If the price falls to $65 per unit, you can't make a profit at any production level.  You can minimize your losses at a low production level, if you want to stay in business while trying to discredit Nancy Pelosi's declaration.