MDF isn't plywood, it's more like thick masonite.
It's a composite board that's made of sawdust, paper pulp and glue
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Yes it is substantially higher priced because MDF is basically saw dust compressed together and warps much easier as plywood is just a thin sheet of wood so you know the quality is better.
mdf is strong but not very strong
Oak is dense and considered a hardwood. That being said, it can absorb liquids, making it porous but, not as poroius as say plywood or mdf.
The ply ma be replace with modern building material as mdf( midi-um density fiber bord), particle board, calcium silicate board, gypsum board,hewer above replacement is totally depend on desire finish & actual use
Yes. MDF contains formaldehyde, and so it cannot be burned - it releases very toxic gases. Respiratory protection should be worn while sanding it. There are companies that make non-toxic MDF, but they are rare. Most all MDF you encounter will be toxic if not covered by a sealer/paint/etc.