Firms with lower customer acquisition costs allow room for increased profitability.

Question

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Lower customer acquisition costs mean that the firm spends less money on acquiring each customer, which leaves room for increased profitability per customer. This is because the cost of acquiring new customers can eat into the firm's profits. Therefore, a lower customer acquisition cost implies that the firm can acquire more customers and still maintain profitability.

Firms with Lower Customer Acquisition Costs Allow Room for Increased