When a firm is very profitable, it is likely that all its products, distribution methods, and so on are equally cost effective.

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A firm being very profitable does not necessarily mean that all its products, distribution methods, etc., are equally cost-effective. Profitability can be driven by a variety of factors including high-performing products or services, market dominance, or effective cost management in certain areas, while other aspects of the business may not be as cost-effective or efficient.

When a Firm Is Very Profitable, It Is Likely That