Answer to Question #317116 in Microeconomics for zzzxxx

Question

What are the benefit associated with low cost of production?

Answer 1

Having a low cost of production means it's cheaper to manufacture one's products. This means one can price their products at the same price as their rivals whilst making more profit since the costs incurred are lower.It also means they can reduce their prices below those charged by rivals to attract more customers and gain a larger percentage of the market share.