An off-diagonal position in the product-process matrix is typically more profitable than a position on the diagonal.

Question

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Positions on the diagonal of the product-process matrix indicate a match between the volume of production and the process chosen, leading to operational efficiency and potentially higher profitability. Off-diagonal positions suggest a mismatch, often resulting in inefficiencies and lower profitability.

An Off-Diagonal Position in the Product-Process Matrix Is Typically More