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Differentiating Outputs and Lowering Costs at the Same Time

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Is it possible for a business to differentiate its outputs and lower its costs simultaneously? Explain. WARNING: Cost is not the same thing as Price; do not use the two terms interchangeably.

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The answer to this problem explains Differentiating Outputs and Lowering Costs at the same time . The references related to the answer are also included.

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It is possible for a business to differentiate its output and lower its costs simultaneously. If a firm differentiates its output then it cannot produce high volumes of standardized product. The opportunity for lower costs through economies of scale is lost if the business differentiates its ...

Solution provided by:
Hatim Baxamusa, MBA
Education
  • BSc , University of Calcutta
  • MBA, Eastern Institute for Integrated Learning in Management
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