Cost curve
Also called: industry cost curve
A ranking of all producers in a commodity industry from lowest cost to highest, showing who stays profitable as prices fall.
Market prices tend to settle where the highest-cost producers needed to meet demand can just survive. Low-cost producers stay profitable in downturns, gain share when others close and earn the most when prices recover.
Learn more in these lessons
- Commodity businessesHow do you analyse a company that sells a commodity?
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