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 Distributive Role - 7
Production is always biased towards the spending of the most affluent members of our society. Profit, after all, is based on spending, and the poor don't spend as much as the rich. If Governments did not intervene in markets, the less well-off in our society, such as the elderly, Aborigines, the unemployed as well as migrant groups and people living in remote areas would be severely disadvantaged.

The Government ensures that the less well-off have access to medical care through subsidies, such as the ''scheduled fee'' for doctors who ''bulk bill'' (that is charge, the Government fee) for medical procedures.

Our society is not a ''level playing field''. All of us do not have the same opportunities to earn an income, or to access goods and services. Again, different groups in our society have differing levels of access to markets. Rural communities must be provided with educational services for their young people. To not provide the schools and teachers a community needs is to condemn its young people to a narrow range of employment, which is often poorly paid.

Thus, the Government must intervene in markets, by levying taxation and using the proceeds to provide resources (such as social welfare or transfer payments to those who are disadvantaged in our community.