ABSTRACT
This chapter focuses on the cost structure of the individual firms. It shows the sources of competitiveness and the firm's ability to achieve market power. The twenty-first century's globalized world offers unique opportunities and challenges for firms that are operating in a global industry. Firm-level productivity is an important factor in determining competitive advantage. J. D. Sterman's inventory-workforce model recognizes two main sources of productivity: knowledgeable labor and the application of technology in the production process. National firm-level share of production data show that LAR's share of national production is the lowest, while Danpo is the largest. The Norwegian firm's live chicken cost share is about 53", reflecting both a high sales price and high cost of inputs. This makes the firm less competitive in the international trade market. A new poultry processing firm may start operations as labor-intensive and gradually transform into a capital intensive one.
