A company's profitability depends on the value customers place on the company's products and a company's ability to reduce its production costs.

Question

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The value customers place on a company's products determines the demand for them, which ultimately affects the company's revenue and profitability. In addition, a company's ability to reduce production costs can increase profit margins and contribute to overall profitability. Therefore, both factors are important for a company's profitability.

A Company's Profitability Depends on the Value Customers Place on the Company's