In order to create a cost advantage, the cost of acquiring low-cost productive inputs must be ________ the cost savings generated by these factors.

Question

Quizplus · Accepted Answer

For a cost advantage to be realized, the cost of acquiring low-cost productive inputs must be less than the cost savings generated by these factors. This allows for a net cost savings that can be passed on to customers or result in higher profits. If the cost of acquiring inputs is greater than the savings generated, there is no cost advantage. If they are equal, there is no net gain.

In Order to Create a Cost Advantage, the Cost of Acquiring