Barries to Entry and Perfect Market

1. “Apa yang dimaksud dengan Barriers to entry ?”

Barriers to entry : anything that makes it difficult for a new entrant to break into a market. They make companies already in the market more valuable as they reduce the risk of new competition (http://moneyterms.co.uk/barriers-to-entry/)

Barriers to entry are designed to block potential entrants from entering a market profitably. They seek to protect the monopoly power of existing (incumbent) firms in an industry and therefore maintain supernormal (monopoly) profits in the long run. Barriers to entry have the effect of making a market less contestable

The economist Joseph Stigler defined an entry barrier as "A cost of producing (at some or every rate of output) which must be borne by a firm which seeks to enter an industry but is not borne by firms already in the industry" (http://tutor2u.net/economics/content/topics/monopoly/barriers_to_entry.htm);

2. Berikan 3 buah contoh dari “Barrier to Entry”?

Jawab :

a) Differential product merupakan sebuah barrier dimana sebuah produk memiliki perbedaan yang membuat perbedaan itu menjadi market power. Contoh : TARO rasa rumput laut mempunyai market power untuk produk jenis ini sehingga sulit untuk pesaing baru masuk kedalam pasar snack rasa rumput laut.

b) Economic of scale dimana barrier to entry menggunakan Skala ekonomis berlaku pada perusahaan yang sensitif pada volume produksi. Contoh : Nike dan adidas yang merupakan pemain utama pasar perdagangan sepatu mempunyai keuntungan karena dapat memproduksi sepatu dalam skala masal sehingga dapat membuat barrier dengan memanfaatkan besar nya jumlah produksi yang besar.

c) Government Polices dimana barrier to entry dapat memanfaatkan aturan pemerintah contoh : Peraturan Menteri Komunikasi dan Informatika (Kominfo) yang melarang semua operator nirkabel menggunakan menara dari perusahaan dengan investasi asing telah menyebabkan kebingungan investor, bagi investor yang sudah memiliki kerjasama dengan investor asing tentunya kebijakan ini menimbulkan persoalan biaya yang baru.

3. Apa yang dimaksud Perfectly Competitive Market?

Markets such that no participants are large enough to have the market power to set the price of a homogeneous product.

A perfectly competitive market must meet the following requirements:

· Infinite buyers and sellers – Infinite consumers with the willingness and ability to buy the product at a certain price, and infinite producers with the willingness and ability to supply the product at a certain price.

· Zero entry and exit barriers – It is relatively easy for a business to enter or exit in a perfectly competitive market.

· Perfect factor mobility - In the long run factors of production are perfectly mobile allowing free long term adjustments to changing market conditions.

· Perfect information - Prices and quality of products are assumed to be known to all consumers and producers

· Zero transaction costs - Buyers and sellers incur no costs in making an exchange (perfect mobility)

· Profit maximization - Firms aim to sell where marginal costs meet marginal revenue, where they generate the most profit.

· Homogeneous products – The characteristics of any given market good or service do not vary across suppliers.

· Non-increasing returns to scale - Non-increasing returns to scale ensure that there are sufficient firms in the industry

Catatan : Price tidak mengalami perubahan walau ada perubahan kuantitas

Apabila tidak ada perubahan permintaan, maka akan seperti pada grafik dibawah ini.