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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
1
Expert's answer
2017-12-18T09:06:07-0500
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.

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