by byronczimmer
If you make a widget, there are costs.Usually, if you make 1 widget, it costs more per unit than if you make 10, 100, 1000, 5000, etc.
But, even though cost per unit goes down, total cost of the production run still goes up.
If you can make 1000 with the money on hand and they all sell out, then you can either make more, or take the money and make something new.
If you can make 1000 with the money on hand and they don't sell at all, you have 1000 boxes sitting in your warehouse taking up space (which over time is also money).
So why make only 1000? That's where their risk/reward curve told them to go.