New Study Reveals Young Producers Charge Lower Prices, Boosting Productivity Growth.
The study looked at how businesses in certain industries grow and survive. They found that revenue and physical productivity have different effects on a company's success. Physical productivity (how efficiently a company makes things) is linked to lower prices, while revenue productivity (how much money a company makes) is linked to higher prices. This means that previous research may have underestimated the importance of both efficiency and demand on a company's survival. They also discovered that new companies charge lower prices than older ones, showing that new businesses can actually be more productive than established ones.