Final answer:
A manufacturing firm would likely increase production and hire more labor in response to increased demand for its products. They may also adjust production technologies to use less expensive inputs if costs rise.
Step-by-step explanation:
When a manufacturing firm experiences an increase in demand for its products, the company might respond in several ways to capitalize on the opportunity. One of the primary reactions is to increase production levels to meet the higher demand. To achieve this, the firm may need to hire more labor, purchase additional raw materials, and possibly invest in new technologies or expand their production facilities to accommodate the increased output. Firms will also examine their current production technology and may shift to using less expensive inputs if one becomes relatively more expensive, to maintain profitability.