Quote:
"In the face of increased scarcity, you would not increase runs and suppress prices."
Actually yes, you would.
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If you are already running at capacity, you wouldn't go to the capital and labor expense of opening new lines unless the return justified the investment. In a period of scarcity, that expanded line will only marginally suppress pricing, and when the follow up glut develops, the ROI on your new line will plummet.