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A domestic furniture company relies heavily on imported lumber. A global shortage causes the price of this lumber to double overnight. Assuming the level of competition among furniture companies in the domestic market does not change, what is the most likely effect on this company's profit share (the fraction of its revenue kept as profit)?
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A domestic furniture company relies heavily on imported lumber. A global shortage causes the price of this lumber to double overnight. Assuming the level of competition among furniture companies in the domestic market does not change, what is the most likely effect on this company's profit share (the fraction of its revenue kept as profit)?
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