Introduction to the competitive firm
Acton Institute Powerblog

Introduction to the competitive firm

Note: This is post #41 in a weekly video series on basic microeconomics.

We tend to assume profit—the bottom line—is the main motivation for a firm’s actions, says economist Alex Tabbarok. For most firms most of the time, this is a good assumption, especially in a competitive market. This video by Marginal Revolution University explores how a company maximizes profit in a competitive environment where there are many buyers and sellers.

(If you find the pace of the videos too slow, I’d recommend watching them at 1.5 to 2 times the speed. You can adjust the speed at which the video plays by clicking on “Settings” (the gear symbol) and changing “Speed” from normal to 1.25, 1.5 or 2.)

Previous in series: Is it cleaner to trade pollution?

Joe Carter

Joe Carter is a Senior Editor at the Acton Institute. Joe also serves as an editor at the The Gospel Coalition, a communications specialist for the Ethics and Religious Liberty Commission of the Southern Baptist Convention, and as an adjunct professor of journalism at Patrick Henry College. He is the editor of the NIV Lifehacks Bible and co-author of How to Argue like Jesus: Learning Persuasion from History's Greatest Communicator (Crossway).