Question

When a manufacturer seeks a market for by-products and accepts a price that covers more than the cost of storing and delivering those by-products, the manufacturer is able to reduce the main product's price to make it more competitive.

Answer 1

Answer:

true

Explanation:

A very effective way to reduce a product's final cost is to sell its by-products.

For example, a sugar processing plant produces sugar and alcohol, and it also generates several by-products that are sold or reused by the company in order to lower costs. The sugar cane fibers are used to produce paper and some of the residual fluids are used as fertilizers. The money generated by selling the by-products can help the company lower the cost of producing sugar and alcohol. Before they sold those by-products, sugar companies had to dispose them properly which resulted in additional costs to the manufacturing process.