Firms can achieve competitive advantage by supplying a product at lower cost than competitors or by effectively differentiating their product so that the customer is willing to pay a higher price.

Question

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This statement is true. Firms can either strive to achieve a cost advantage by producing their product at a lower cost than competitors, or they can differentiate their product in a way that makes the customer willing to pay a higher price. Achieving either of these strategies can result in a competitive advantage for the firm.

Firms Can Achieve Competitive Advantage by Supplying a Product at Lower