In the fall of 2008, after the collapse of the U.S. housing market and the onset of

Question:

In the fall of 2008, after the collapse of the U.S. housing market and the onset of a major global recession, a Canadian newspaper headline claimed "Drastic Cost Reductions Needed to Save 13 B.C. Sawmills."
a. Does the headline suggest that the B.C. lumber companies are not profit maximizers?
b. If long-run unit costs are "too high," what is stopping the lumber companies from simply moving down their LRAC curves?

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