A firm with a higher market share than a competitor will have lower per-unit costs.

A firm with a higher market share can often benefit from economies of scale, which can lead to lower per-unit costs. By producing a greater volume of goods or services, the firm can spread its fixed costs over a larger revenue base, reducing the average cost per unit. Additionally, a larger market share may allow the firm to negotiate better prices with suppliers or to invest in more efficient production processes. However, it is important to note that a higher market share does not always guarantee lower per-unit costs; other factors such as competition, technology, and regulatory environments can also affect a firm's cost structure.