Production Cost Advantage

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Production Cost Advantage

A source of competitive advantage that depends on producing some product or service at the lowest cost.

Production Cost Advantage

The ability for an economic actor to produce a good or service at a lower cost. For example, if a company produces 100 widgets for $50 and a second company produces 100 widgets for $25, the second company has a production cost advantage in the production of widgets. See also: comparative advantage, absolute advantage.
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I expect that we will see a continuation of this trend, as more foreign investors find that the production cost advantages they enjoy in their homelands is less valuable than being directly attached to the world's greatest consumer market.
Moreover, the Burley plant fits well with our destination model and will serve local markets for both fuel and feed with significant production cost advantages over products imported
As a way to make sure that the aid is limited to those extra costs, the Commission considers that all production cost advantages that the company derives from the investment must be deducted.
Production cost advantages could occur due to greater efficiency or lower input costs.
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