Question

What cost effective techniques will you follow for your product?

Answer 1

For my product i will focus to use the "Optimal combination of factor of production" to minimize the cost. I will reduce it in the very first step of production. I will have all the optimal combinations that are possible through iso-cost and iso-quant curves and choose the most suitable. 

Answer 2

Cost effective method is the one which benefits the product with a lower cost.
The cost effective techniques which can be followed for a product can be the following:

- Promotional techniques such as television ad should not be done in order to save the cost, word of mouth should be used along with social networking sites where promotion is rather inexpensive as compared to television or billboard advertising.

- The location where the product is made matters a lot too, it should have access to the raw materials and the labors needed to produce the product.

- While making the product the element of social responsibility should be kept in mind too so that the product can be produced under environmental friendly circumstances.

- Being socially responsible will make the people care more about the product as it will have more respect in the eyes of the consumer.