Goal of a Purely Competitive Firm
What is the Goal of a Purely Competitive Firm? Explain briefly.
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Goal of Purely Competitive Firm: The goal of firm and your goal as manager is gain maximization. The tool of firm manipulates to attain this goal is the level of production, or yield, for the firm. There is one stage of production which will maximize gains for the firm at any specific price. To find this stage, the firm requires comparing the additional revenue it obtains from the last unit generated, or the marginal revenue, with extra cost of producing that unit or marginal cost.
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