Question1: Objectives are comm

A firm may have different objectives in different markets. Forexample a firm in a fully competitive market may aim at increasingproduction by reducing cost of production. In a fully competitivemarket, every firm is a price taker. In order to increase profit,it needs to be more efficient than other firms.

Likewise, a firm in monopolistic competition, or oligopoly mayhave different objectives accordingly.

There are many theories that state different objectives offirms. Managerial theory states that managers try to increase saleswhereas according to one theory a fim may emphasise on increasingits market share. Such objectives are said to be strategicobjectives where a firm looks at consolidating its position in themarket.

For example, in a telecom market which is generallyoligopolistic in nature, a firm may pursue increasing its marketshare rather than looking at short term profitability.

A telecom operator in India, Jio Inc. owned by RelianceIndustries, invested at least $30 billion dollars, mostly on loanto offer its services at most affordable rate in the market whichled to the firm becoming the largest telecom company in thecountry. Here, Jio looked at long term strategic objectives and notprofitability in the short term.

Thus, we can say that a firm or a company may have differentobjectives depending on the market structure it is operatingin.