What must a firm know before it can set its output and profit mark- up levels to avoid shortages and surpluses?

Question

Quizplus · Accepted Answer

The firm must know its demand curve to set its output and profit mark-up levels to avoid shortages and surpluses. The demand curve shows the relationship between the price of a good and the quantity demanded. By knowing its demand curve, the firm can determine the quantity of output that it can sell at a given price. This information is essential for setting the firm's output and profit mark-up levels.

What Must a Firm Know Before It Can Set Its