The following appeared as part of an annual report sent to stockholders by Olympic Foods, a processor of frozen foods."Over time, the costs of processing go down because as organizations learn how to do things better, they become more efficient. In color film processing, for example, the cost of a 3-by-5-inch print fell from 50 cents for five-day service in 1970 to 20 cents for one-day service in 1984. The same principle applies to the processing of …
showed first 75 words of 668 total

showed last 75 words of 668 total
…raw material. The final consumer is thus provided with a better product and with competitive price. The above argument is well reasoned, baring the generalization, as there are exceptions to every situation. It may not be necessary that a firm existing for decades will lower the cost of its products and produce more profits. For example Fiat an automobile company is on the verge of bankruptcy. Moreover each business caters to different types of clients.