Introduction to the Competitive Firm

How does a company really behave? We tend to assume profit - the bottom line - is the main motivation for a firm’s actions. For most firms most of the time, this is a good assumption, especially in a competitive market. With this video, you will explore how a company maximizes profit in a competitive environment where there are many buyers and sellers.
This idea comes with a few surprises. Does a company really control what price it sets? Or does the market determine the price? Here’s a clue. If you owned an oil well, even your mother wouldn’t buy your oil if she could get the same oil somewhere else for less money. Watch and find out why.
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Help us caption & translate this video!
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[@sheikhspear6725]

Mother why have u betrayed me

[@hind181]

this makes me laugh man =)))

[@SamyrOfficial]

Chỉ Ăn Táo Thần Chết me too hahaha this channel is awesome!!!!

[@adiraj9198]

😂😂

[@SaltUnknownyt]

😢❤

[@acapellaz1]

not even your mother will buy your oil...lololol

[@Kingunno]

Utilising the oil extraction sector within the oil market is actually very misleading. The oil extraction market is one of the most prominent oligopolies if not monopolies (OPEC) in today's world; although it is true that the product is homogenous, OPEC is a price-maker and in no way are all the extraction companies within it price-takers (See energy crisis of 1970). I would be more tending towards agreeing on a perfectly competitive oil distribution sector, as in the majority of countries theres enough variation between petrol stations and their respective holdings to allow for a homogenous price, and the barriers to entry are much lower in distribution rather than extraction.

[@dagwould]

Pity the importance of profit wasn't explained. People tend to think of profit as 'icing on the cake'. But no. Profit is firstly the measure of value you provide your customers; secondly, it provides a return on the risk and investment the firm makes, with this return providing for the firm's growth, development of new products, and attractiveness to lenders and investments.
If there is no profit, the firm will fold even in the short term: no one will invest in it, it can't invest in itself, and investors will seek a better return for the risk of their investing.
Firms have a social duty to make a profit. It, above all, sustains employment.

[@ajlenze8]

At about 4:15 into the video, the onscreen graph shows the price at $50, but the voice states $52. Not a big problem, but I just thought you might want to know about the discrepancy.

[@jenishagurung5952]

why he gotta go to my mum for

[@desmond7931]

Not even your mother😂😂😂

[@venitatashlitsky-gf8dv]

This is absolutely silly. Is it possible to make this video WITHOUT the non-correlated red scare propaganda??

[@cbass9756]

hold barrels sell when high

[@Animeproductions419]

Thank you professor

[@scroogietw6878]

Thats exactly what i need for revising my studies! :)

[@ClonemanProductions]

yeah!

[@vitorialissa1311]

Sub Português Brasil, please!

[@Drunrealer]

Thanks

[@dagmawittarekegn2957]

Hats off for this explanation