When a manufacturer seeks a market for by-products and accepts a price that covers more than the cost of storing and delivering those by-products, the manufacturer is able to reduce the main product's price to make it more competitive.

Question

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When a manufacturer is able to earn a profit from the sale of by-products, it can reduce the cost of the main product and still maintain profitability. This makes the main product more competitive in the market.

When a Manufacturer Seeks a Market for By-Products and Accepts