Question

1. What is the objective of the firm and how is it related to the concept of a net-benefit? Be sure to explain what the activity of the firm is and how the concept of "optimal quantity" is relevant to the firm's objective.

1-3 paragraph please. thank you.

Answer 1

SOLUTION:-

* It can be mentioed that usuall for an organisation the objective of a firm is related to profit maximization where it can be considered as the main aim of the companyand net benefit is related to the objective because the net benifit is ultimate profit you receive from the business activity and the objective is to maximize the net benifit.

* The activity of the firm can be production process on the services and in this regard mention that the ptimal quantity can actually tell about the point at which the profit is maximized when the marginal revenue is equal to the marginal cost and if the firm producers in that point, objective of profit maximization would be reached.

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