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

Perfect Competition (continued) - 27
Some parts of Australia have fruit fly. This nasty little bug can make biting into a peach less than enjoyable, because of the maggots deposited by the fly in the fruit. South Australia is mostly fruit fly free, because the state is surrounded by dry rural areas that the fruit fly can not travel through. South Australian peaches can be certified as ''fruit fly free'' and have perfect mobility in markets throughout Australia. New South Wales grown, organic peaches can not be brought into South Australia, because they may contain fruit fly. Thus NSW peaches do not have ''perfect mobility''. South Australian peaches do.

In a perfectly competitive market, there are no barriers to entry; firms can enter and leave the industry without cost.

[In the Adelaide Central Market, you can become a stall holder, as long as a stall is available for rent, and you can keep up the rental payment. A ''barrier to entry'' exists.]

In a perfectly competitive market, there is no non price competition, such as advertising. Customers come to the market; they know where the market is. You don't have to advertise where you are, in theory.

[No advertising is impossible in reality - you must have a sign with your trading name on it. One of the fun experiences in going to the Adelaide Central Market is to hear the different stall holders calling out the goods they have to sell.

'' Get your fresh broccoli here!''
''Beau - u - u - tiful fresh tomatoes here today!''
Some of these stall holders have the ability to be amusing as they ''spruik'' and attract customers.]

In a perfectly competitive market, we assume that each firm is attempting to maximise their production levels (produce as much as they can), and thus maximise their level of profit. All firms are using the same technology, and all are using ''least cost, greatest profit'' methods of production.

[At the Adelaide Central Market, all the stall holders use electronic weighing scales, to accurately determine the cost of your purchase. To do otherwise could cause a loss of revenue to the stall holder.]