Should managers of a plywood firm increase firms capacity, Microeconomics

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Should managers of a plywood firm increase firms capacity

Problem

The plywood market is perfectly competitive. The demand for home construction increases, increasing the demand for plywood. If the increase in demand for plywood is permanent, should the managers of a plywood firm increase their firm's capacity? Why or why not?

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Microeconomics: Should managers of a plywood firm increase firms capacity

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Microeconomics: Should managers of a plywood firm increase firms capacity

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