[Bigun]

Given the Low unemployment rate and given high capacity utilization rates in industry any increase in production encounters the Law of Diminishing Returns and will cause higher costs and higher prices. This is true for domestic production OR production for export.

I do no disagree with this as far as it goes but I would assert the there is plenty of room for production capacities to increase given the right incentives for it to do so. All of this however has very little, if anything, to do with the subject of this thread.

Companies can remain in business without profits for as long as they have assets to convert to cover the difference between revenues and costs. Short run unprofitability is not uncommon.

I do not disagree with this either but would contend that NO company sets out to not make a profit and thus any company which fails to take the prospect of taxes on those profits into account in setting prices is quite foolish regardless of whether or not they actually make a profit!

[justshutupandtakeit]

No it is not the subject but you misrepresented/misunderstood my comments with regard to exports.

The company does not set out not to make a profit but can continue for many years without making one. Look at the old American Motors. In fact, one could continue indefinitely without making money or paying income taxes.