... with the classic theories of the free market as expounded by the early economic thinkers. Small firms compete for a limited supply of business, and in such a competitive market a near Horizontal Demand curve develops. "Each firm in a perfectly competitive industry faces a horizontal demand curve...However much the firm sells it gets the market price. If it charges a price above Po it will not sell any output: buyers will go to other firms whose product is just as good. Since the firm can sell as much as it wants at Po [Market Price], it will not charge less than Po. The firms demand curve is horizontal.2 If supply outstrips demand or if firms fail to meet consumer expectations of quality, service, integrity and cost, demand for their services falls and they go bankrupt. At this level a considerable amount of power rests with the consumer, indeed a firm that ...

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