Answer to Question #149714 in Economics of Enterprise for Hammad

Question

car manufacturing should continue to produce additional cars as long as the firm is profitable justify

Answer 1

Maintaining production will be dependent on Marginal product of labor for the car company, marginal revenue product of the company's labor, and maximizing profit. The general rule is that the maximizing of profit by producing that quantity of output where marginal revenue equals marginal profit maximizing issue can be approached from the input side.