1.   With many firms, the firm that expands output will always be able to reduce costs and undercut its rivals.

2.   If the firm is operating at MES, the opportunity to expand output will not result in lower costs.

3.   Firms reacted to the expansion of demand by raising prices, as well as expanding output, in order to try and raise profit margins.

4.   Note that the ability of firms to expand output in this situation depends upon the existence of unemployed resources in the economy.

5.   Chrysler does have one new hit, its retro-styled PT Cruiser, but the company sorely underestimated demand and is struggling to expand output.

6.   Fertilizer makers will also benefit from expanding farm output.

7.   GM had planned to build assembly lines in China and Thailand, and to expand output in Indonesia.

8.   Iketani is building large new plants with electric furnaces to expand his output.

9.   It will also halt construction of two larger reactors capable of expanding its output of spent fuel and seal its facility for reprocessing that fuel.