A manufacturer of pencils contemplates backward integration into production of rape seed oil, a key ingredient in manufacturing the rubber-like material (called factice) that forms the eraser. Rape seed oil is traded in world commodity markets and its price fluctuates as supply and demand conditions change. The argument has been made in favor of vertical integration: "Pencil production is very utilization sensitive, i.e., a plant that operates at full capacity can produce pencils at a much lower cost per unit than a plant that operates at less than full capacity. Owning our own source of supply of rape seed oil insulates us from short-run supply-demand imbalances and therefore will give us a competitive advantage over rival producers." Explain why this argument is wrong.