By comparing marginal revenue and marginal cost,a firm in a competitive market is able to adjust production to the level that achieves its objective,which we assume to be

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A firm in a competitive market aims to maximize its profit. By comparing marginal revenue and marginal cost, the firm can determine the level of output that maximizes their profit. If marginal revenue is greater than marginal cost, increasing production will increase profit. If marginal cost is greater than marginal revenue, decreasing production will increase profit. Therefore, the objective of a firm in a competitive market is to produce at the level where marginal revenue equals marginal cost, which maximizes their profit.

By Comparing Marginal Revenue and Marginal Cost,a Firm in a Competitive