Question:- Fill in the blank.
Innovation allows producers to _____.
Answer: The correct answer is cost.
They both have a role through which innovation enhances the producer’s possibilities to minimize their costs or expenses of production. Advanced technologies, procedures or techniques should be developed by the producers in such a way in order to enhance the effectiveness and efficiency of producers’ business. Technology advancements and enhancements like automation, better ways of production, and application of energy conservation measures can drastically reduce expenses that relate to labour, material and overheads. Also, the drive towards innovation can bring up production and delivery of new products or services which can cost less than the existing ones that are already in the market. In conclusion, innovation results in cost reduction hence improving the competitiveness of the producers, and profitability and in some instances can translate into lower prices for consumers.
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