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Answer to Question #71909 in Economics of Enterprise for Kiersa
Question #71909
How do firms know what to produce, how much will be produced, how to produce it and for and for whom to produce it
Expert's answer
Firms know what to produce, because they choose to produce in profitable markets only. Firms find how much will be produced calculating profit-maximizing level of production.
Firms know how to produce it and for and for whom to produce it according to supply and demand of particular product.
Firms know how to produce it and for and for whom to produce it according to supply and demand of particular product.
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