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

Oligopoly (continued) - 36
Competition in an oligopolistic market is intense. Both price and non-price methods of competition are used. You have probably seen, read or heard advertisements along these lines ... ''We will not be beaten on price. If our competitor is selling item X for less, we will match their prices, whether the item's price has been reduced for a special sale or not''.

Firms in oligopolies compete by offering warranties (''We will replace the item without cost if it is found to be defective in any way''), and through ''customer service (''friendly, helpful staff'' and ''free home delivery'' are two). Woolworth's has been particularly successful in it's ''We're the fresh food people'' advertising campaign.

The telecommunications market in Australia was once a monopoly; all telecommunications services were provided by Telecom Australia. In the 1990's, the federal government allowed Optus to commence trading in the market, which was then called a duopoly. Telecom was partially privatised; one third of the company is now owned by private investors. New telecommunications service providers have also started operating in the market as well; AAPT and many others now compete against the industry ''heavy weights''.

Firms in oligopies are said to be mutually interdependent. If one firm changes its prices, this will have an effect on the sales of all other firms in the market.