Let's Generalize This

• Firms only "produce what they think the can sell at a profit." (Macro, 194)

• "Firms will only supply output for which they think there is a demand." (Macro, 195)

• Factor hiring decision into this:

        "Firms will employ the number of workers that they think they will need 
        to produce the amount of output that they expect to sell at a profit."
        (Macro, 196)