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1. Cost Advantage

   Linked via "Price Advantage"

   Cost Advantage vs. Price Advantage
   It is essential to distinguish between a genuine Cost Advantage and a temporary Price Advantage. A Price Advantage exists when a firm sells below the prevailing market price, irrespective of its underlying cost structure. If a firm achieves a low price solely through predatory pricing or unsustainable debt financing, it possesses a Price Advantage but lac…