Final answer:
Companies produce high-quality customized products for less money through specialization and economies of scale, which reduce production costs as output increases.
Step-by-step explanation:
One of the key strategies that enables companies to produce customized products with high quality for less money is the use of specialization and economies of scale. Specialization allows workers to focus on their particular strengths and improve their efficiency, while economies of scale refer to the decrease in average costs of production as the volume of products made increases. This principle can be seen in large-scale manufacturing, such as with automobile factories, where producing a higher quantity of cars reduces the average cost per car.
For instance, when a car factory ramps up its production from 100 to 50,000 cars annually, it benefits from setting up specialized assembly lines and employing workers who perform specific tasks, significantly reducing the average production cost per vehicle. Additionally, companies like Amazon have been successful by creating efficient production models that enable them to sell products at competitive prices, even considering shipping costs.