Final answer:
Product strategy involves determining what products to produce, how to produce them, how much output to produce, what price to charge, and how much labor to employ. These decisions depend on production and cost conditions, as well as market structure and competition.
Step-by-step explanation:
In product strategy, the firm determines what products it should produce, how it should produce them, how much output it should produce, what price it should charge for its products, and how much labor it should employ. The answers to these questions depend on the production and cost conditions facing the firm, as well as the market structure for the product(s) in question.
The firm should consider factors such as its unique capabilities, market demand, competition, and profitability when deciding what products to produce. It should also analyze different production processes to determine the most efficient and cost-effective way to produce the products. The firm should determine the optimal quantity of output based on market demand and cost considerations. The price of the products should be set to maximize revenue and profit, taking into account factors such as production costs, competition, and customer value. Finally, the firm should consider labor requirements, balancing the need for sufficient labor to meet production demands with cost considerations.