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

Vertical and Horizontal Integration Defined - 13

Firms can gain greater control over prices in a market in two major ways. The first is called horizontal integration; a firm can take over its competitors until it controls most of the market.

The other method is called vertical integration; a firm takes over its suppliers of resources, and/or it takes over the distributors of its product. If you can dominate the source of raw materials, you can deny your competitors these resources, effectively ''closing them out''. If you dominate distribution, by buying many of the retail firms that sell your production, you can refuse to stock the goods manufactured by your competitors. Consumers will be denied choice; a vital part of an efficient market.

Governments have increasingly intervened in markets because of the growing complexity of these markets. Firms must ensure safe working practices in the work place; and they must also ensure product safety.