Question: An electronics manufacturer that makes components for flat TVs has costs that are below those of some of its competitors but above those of other

An electronics manufacturer that makes components for flat TVs has costs that are below those of some of its competitors but above those of other competitors. Owing to a boom in demand for flat TVs, component manufacturers are able to operate profitably at full capacity. Would it be advisable for the electronics manufacturer to invest in adding further facilities to lower its operating costs? What factors do you think need to be evaluated well by the companys managers to consider in making their decision?

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