Question

A firm maximizes its profitability when it: creates products similar to the products of its competitors. strips all the value out of its product offering. minimizes the value provided by its products. picks a position on the efficiency frontier that is not viable. configures its internal operations to support the position selected by it on the efficiency frontier.

Answer 1

A firm maximizes its profitability when it "configures its internal operations to support the position selected by it on the efficiency frontier".

In economics, profit maximization is the short run or long run process by which a firm may decide the value, information, and yield levels that prompt the best benefit.

The general guideline is that the firm maximizes profit by delivering that amount of yield where negligible income breaks even with peripheral expense. The profit maximization issue can likewise be drawn closer from the information side.