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 Importance of Competition - 3
The failure of the planned economies of the USSR and Eastern Europe to produce the goods and services their people wanted emphasises the strengths of a market economy, and of decentralised markets.

The key element of a market economy is competition. Different firms producing similar products provide choice to consumers. Governments do intervene in markets; they provide a legal framework that firms must operate within. Governments intervene to ensure product quality, and safety to consumers, and to society at large. Governments also intervene to regulate the behaviour of companies so that they can not unfairly manipulate prices, and gain excessive levels of profit, that disadvantage consumers.

Market economies have been successful at allocating resources so that what is produced is what consumers buy. Firms that produce goods and services that are not wanted, go broke.