Final answer:
Lowering production costs through technology or improved organization can increase profitability and give a competitive advantage.
Step-by-step explanation:
When a firm finds a way to lower production costs through better technology or improved organization, it can have several positive impacts on the company. Firstly, it can lead to increased profitability as the firm can produce the same quantity of output at a lower cost, resulting in higher profit margins. Secondly, it can give the firm a competitive advantage in the market, as lower production costs can allow them to offer lower prices or invest in other areas such as marketing or research and development.
For example, if a firm adopts a new technology that automates certain tasks, it can reduce the need for labor and save on wages. This can significantly lower the overall cost of production. Similarly, if a firm improves its organization by streamlining processes or adopting lean manufacturing techniques, it can reduce waste, increase efficiency, and lower costs.
In conclusion, finding ways to lower production costs through better technology or improved organization can have a positive impact on a firm, leading to increased profitability and a competitive edge in the market.