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 Regulative Role - 8

None of us, no matter where we live is an expert in everything. As consumers, we need government legislation that ensures that what we buy is safe for us. How do you know that your microwave is not emitting excessive levels of radiation? Governments must legislate for technical standards for product safety. It is easy to produce a cheaper microwave, if you ''skimp'' on materials and proper electronics. ''Least cost'' could mean ''greatest danger'', if Governments did not intervene in markets.

Regulation is not ''bad''. State and Federal governments have passed legislation on weights and measures. Why do we trust the butcher when he sells us one kilogram of lamb chops, that we are actually getting an accurately weighed kilogram of lamb chops? Because all scales and measuring devices are regularly tested by the appropriate public service department. Retailers whose scales or measuring devices are inaccurate are fined. Such regulation actually improves the operation of markets, and helps to actually increase sales. Consumers have confidence in the operation of the market, and particpate in it.

Restaurants and other food outlets are also regularly checked to see if they conform to health standards. Food preparation areas must be cleaned regularly, and proper procedures used in the handling and preparation of food. One reason we eat ''out'' in restaurants is because we trust the food outlet will not give us an ''upset tummy''. Without government regulation, food outlets would have less sales.