"The oil business is just too competitive, which is great for consumers but not shareholders." Explain Why the high level of competition in the oil industry is food for consumers but bad for shareholders who own these firms.
High competition in an industry generall means lower prices for consumers. As more firms enter an industry, the demand for each individual firm's product decreases. The decrease in demand shifts the individual firm's demand curve to the left, which lowers the selling price, which is good for consumers. If the industry is monopolistically competitive, the firm's demand curve will eventually shift to the point where it is tangent to the average total cost curve. This is where price is equal to average total cost, which means the firm is breaking even, which compared to earning a profit, is bad for shareholders.