Low-Cost Production - Explained
What is a Low-Cost Producer?
Written by J. Mance Gordon
Updated at April 21st, 2024
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What is a Low-Cost Producer?
A low-cost producer is a company in a specific industry that can produce goods at a lower cost than other producers. That is, the producer has a higher profit margin on the sale of a product than competitors.
What is a Low-Cost Strategy?
This often leads to the producer charging lower prices for products to achieve higher sales that competitors. Being a low-cost producer is a significant strategic advantage.
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