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Question
Differentiate between ‘firm’ and ‘industry’.
Distinguish Between
Solution
- 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. - 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.
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Equilibrium Conditions for a Firm
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