Index
Introduction - 1
Defining A Market - 2
The Importance Of Competition - 3
The Result Of Competition - 4
Intervening In Markets - 5
The Allocative Role - 6
The Distributive Role - 7
The Regulative Role - 8
The Regulative Role (continued) - 9
The Role Of Government - 10
The Role of Government (continued) - 11
The Stabilizing Role - 12
Vertical and Horizontal Integration Defined - 13
Defining Market Structure - 14
How A Firm Can Grow - 15
Mergers and Takeovers - 16
Vertical And Horizonal Integration (Diagram) - 17
Why markets Vary in Structure - 18
Product Differentiation - 19
Product Differentiation (continued) - 20
Free Range ''Googs''- 21
Product Differentiation (continued) - 22
Non Price Competition - 23
Non Price Competition (continued) - 24
Defining The Types Of Market Structures - 25
Perfect Competition - 26
Perfect Competition (continued) - 27
The Market For Oranges - 28
The Market For Oranges (continued) - 29
Bitter Oranges - 30
Summary: Perfect Competition - 31
Monopolistic Competition - 32
True Blue Oranges - 33
Monopolistic Competition (continued) - 34
Oligopoly - 35
Oligopoly (continued) - 36
Oligopoly (continued) - 37
Kinked Demand Curves - 38
OPEC - 39
OPEC (continued) - 40
Monopoly - 41
Microsoft - 42
Why Monopolies Are Inefficient - 43
Revision Questions On Market Forms - 44

The Role Of Government - 10
Often, the market looks at the ''what'', ''how'', ''who'' and ''how much'' questions on a short term basis. Governments are needed to plan economic activity on a ''long term'' basis. The development of housing, for example, requires the provision of many services: electricity, water, gas, telecommunications, roads. An integrated approach to the provision of services can lead to cost savings for consumers.

It was argued in the 1950's and '60's that the Government should be a major player in the banking system, through the Commonwealth Bank, to ensure that all the other banks did not reduce competition, to their own advantage. Similarly, Australia had two major domestic airlines (until the 1990's). One, previously known as Trans Australia Airways or TAA was publicly owned; that is, owned and operated by the Federal Government. The other, Ansett Airlines was privately owned. The two airlines competed in the domestic air travel market; in theory, each ''kept the other honest''.

Often, market prices do not accurately reflect social costs, such as pollution. The growing restrictions on smoking, and increases in the cost of cigarettes, reflect the growing understanding of the costs of smoking to the general community; for example passive smoking.