When the costs of supplies increase in an industry, the low$-$cost leader may:

continue competing with rivals on the basis of product features.

end up earning a lower$-$than$-$average returns compared to rivals due to a smaller wedge between the price and the cost.

gain customers as a result of increases in the low$-$cost leader's product price.

make it easier for new entrants to the industry to achieve above$-$average returns.