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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

Non Price Competition (continued) - 24
Many firms advertise using well known individuals as the main character. If you like or trust this person (they may be a sporting hero, a television or radio personality), and this person says ''I recommend Product X'', you are more likely to buy it in preference to another.

We all say we are not influenced by advertising, but we are!

All of us will buy, at some stage, a large number of ''whitegoods'' or ''consumer durables''. These terms represent items like refrigerators, televisions, washing machines, microwaves; the list is a long one. How can we make a choice between half a dozen different washing machines? As consumers, most of us do not have the engineering skills to be able to say one washing machine is structurally stronger than another, or that this electric motor in Machine A is a better motor than the one in Machine B. Manufacturers of these goods offer warranties and ''after sales service'' on their products. ''If our product breaks down within twelve months of purchase, we will repair it without charge''. I can remember when the warranty on many new cars was 40,000 kilometres. Today, many manufacturers are offering warranties of 100,000 kilometres. The implication is clear ''we are so confident in the quality of our product, we'll take the risk of a breakdown; because there won't be one''.