Question

Differentiate between ‘firm’ and ‘industry’.

Answer 1

1. Firm:
   A firm refers to a single production unit in the industry, producing a large or a small quantity of a commodity or service, and selling it at a price in the market. Its main objective is to earn a profit.
2. Industry:
   The industry refers to a group of firms producing the same product or service in an economy.
   (Eg.) A group of firms producing cement is called a cement industry.