Does it ever make sense to underproduce as a firm?
An interesting case is: should a firm ever produce less than the profit-maximizing output? This could make sense in a dynamic setting: by underproducing in the short run, you might increase future long-run demand. For example, when popular toys like Cabbage Patch Kids and Power Rangers were first released, they were in short supply. Parents went nuts trying to find them, and there was lots of media coverage. Eventually the supply increased; to be honest, I don't know if they raised the price but they could have.