Decreased input costs, such as wages or raw materials, can have significant impacts on a firms’ performance.
One of the most notable impacts is that it will allow for increased output and profits. This article discusses how decreased input costs can affect firm performance.
Emphasis: Input costs are a key factor in the performance of firms.
Decreased input costs can have significant impacts on firm’s performance.
One such impact is that it will allow for increased output and profits.
Making them increasingly competitive in the market place with other firms who could not decrease their own input costs as much or at all.
They allow companies to pass some savings onto customers.
While maintaining revenue levels through lowering production cost per unit sold (Reichling).
The second important way decreased input costs affect firm performance is by increasing productivity.
Less time must be spent producing raw materials.
Assembling products before being able to sell them this allows employees more.