A firm's profitability maximizes when it:

Question

Quizplus · Accepted Answer

Profitability is maximized when a firm has the right organization structure in place to execute its strategy effectively. This means that the firm must have the right people, resources, and processes in place to achieve its goals in the most efficient and effective way possible. Creating similar products to competitors do not necessarily lead to profitability maximization, and stripping all the value out of a product offering can lead to negative impact on customer perception and loyalty. Picking a position on the efficiency frontier that is not viable can also negatively affect profitability, while configuring internal operations to reduce costs may help increase profitability but it's not the only factor to be considered.

A Firm's Profitability Maximizes When It