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How do the concepts of the customer’s willingness to pay, the firm’s costs and the market...

How do the concepts of the customer’s willingness to pay, the firm’s costs and the market price relate to competitive advantage?

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Willingness to pay is defined as the maximum price a customer would like to pay for a good or service. The maximum willingness to pay depends on the price, cost incurred by firm, quality, value etc.
Cost is directly related to the competitive advantage, lesser the cost, more would be competitive advantage and hence price can be decided accordingly to stay competitive in market. With the lower cost and price with the quality standard requirements, consumer would be willing to pay more

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