According to Michael Porter, all positions on the efficiency frontier

QUESTION

According to Michael Porter, all positions on the efficiency frontier are viable.

Indicate whether the statement is true or false.

ANSWER

FALSE
Porter emphasizes that it is very important for management to decide where the company wants to be positioned with regard to value (V) and cost (C), to configure operations accordingly, and to manage them efficiently to make sure the firm is operating on the efficiency frontier. However, not all positions on the efficiency frontier are viable.