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To remain competitive, manufacturers must be low-cost producers. Is this statement TRUE or FALSE?

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Final answer:

Manufacturers must be low-cost producers to remain competitive.

Step-by-step explanation:

To remain competitive, manufacturers must be low-cost producers. This statement is TRUE. One of the important lessons from the theory of the firm is that large-scale production can significantly reduce average costs. When manufacturers are able to produce goods at a lower cost, they can offer competitive prices to consumers, which can help them remain competitive in the market.

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