If your firm has a random demand, producing at the level that maximizes your expected profit will earn the same profit as the profit- maximizing production level with a known demand.

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If the demand is known, then the profit-maximizing production level can be directly calculated. However, with random demand, it is not possible to determine the exact profit-maximizing production level. Instead, the firm would have to use techniques such as expected value or simulation to estimate the profit-maximizing level, which may not necessarily earn the same profit as the profit-maximizing production level with a known demand.

If Your Firm Has a Random Demand, Producing at the Level