Production and Producer’s Behavior in a Competitive Environment

The consumer goes to market in order to buy the products that are useful for him or simply to buy something which makes him happy. In other words he tries to satisfy his basic needs (such as food, clothing etc) as well as the secondary ones. The producer comes to market with the products requested by the consumers and tries to sell it at a price that would cover production costs and obtain a profit. The manufacturer must meet the consumer desires offering him those products that have desirable characteristics, have a nice design, etc. The manufacturer has a multitude of ways to promote his products so that they can be sold and not kept in stock, there by wasting a substantial amount of resources.