Legendary for his business and investment acumen, Warren Buffett is frequently called the "Oracle of Omaha" after his birthplace in Omaha, Nebraska. As one of the world's wealthiest business owner-investors, business executives are always interested in any insight or opinion Mr. Buffett might wish to share.

Explain each one of the following statements made by Warren Buffett. (Quotations fromThe Wall Street Journal, September 23, 2002.)

1. "You cannot be the high-cost producer in a commodity business."
2. "Sometimes it's not even any good to be the low-cost producer."