Posted by **Shawn** on Sunday, April 18, 2010 at 6:39pm.

You manage a U.S. based company that makes #2 pencils that sell in a highly competitive market (your pencils are considered a standardized commodity by your customers). Your marketing data predicts that in the upcoming year overall industry production will fall by at least 5% because some of your U.S. competitors cannot continue to compete with foreign suppliers and plan to cease production, but market demand will rise at least 4%. How, if at all, should you alter your production plans for the coming year? Explain.

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