​Which firm in an industry is likely to have higher profits?

A) ​Sellers with higher costs than their competitors
B) Sellers with lower costs than their competitors
C) Sellers with the same costs as their competitors
D) ​All of the above

In a competitive market, firms with lower costs can offer lower prices and attract more customers, resulting in higher profits. Higher costs mean that prices must be higher to make a profit, which may discourage some customers from buying from that seller. Selling at a lower price than competitors while still making a profit is easier for firms with lower costs. Therefore, sellers with lower costs than their competitors are likely to have higher profits.