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  • Monopoly: Hana Azhari Fikri Firdaus Mutiara Firanti

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    This document discusses the topic of monopoly. It defines monopoly as the control of production or markets for goods/services by a single business or group. Key characteristics of a monopoly market include domination by one company and lack of substitutes. Factors that can create monopolies include unique resources, economies of scale, and government granting of exclusive rights. The document outlines different types of monopolies and notes both strengths like lower costs but also inefficiencies from producing at less than optimal levels. It provides the example of Indonesia's state-owned electricity company PLN, which faced criticism for unilateral blackouts.

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    This document discusses the topic of monopoly. It defines monopoly as the control of production or markets for goods/services by a single business or group. Key characteristics of a monopoly market include domination by one company and lack of substitutes. Factors that can create monopolies include unique resources, economies of scale, and government granting of exclusive rights. The document outlines different types of monopolies and notes both strengths like lower costs but also inefficiencies from producing at less than optimal levels. It provides the example of Indonesia's state-owned electricity company PLN, which faced criticism for unilateral blackouts.

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    37 views9 pages

    Monopoly: Hana Azhari Fikri Firdaus Mutiara Firanti

    Uploaded by

    mutiara firanti
    This document discusses the topic of monopoly. It defines monopoly as the control of production or markets for goods/services by a single business or group. Key characteristics of a monopoly market include domination by one company and lack of substitutes. Factors that can create monopolies include unique resources, economies of scale, and government granting of exclusive rights. The document outlines different types of monopolies and notes both strengths like lower costs but also inefficiencies from producing at less than optimal levels. It provides the example of Indonesia's state-owned electricity company PLN, which faced criticism for unilateral blackouts.

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    MONOPOLY

    By

    HANA AZHARI
    FIKRI FIRDAUS
    MUTIARA FIRANTI
    WHAT IS MONOPOLY?

    Monopoly is the control of the


    production and / or market of goods or
    certain services by a business actor or
    a particular business group
    CHARACTERISTICS OF THE MONOPOLY MARKET

     Monopoly Market is industry of one company

     Do not have similar substitutes

     There is no possibility of entering the industry

     Can affect pricing

     Ad promotion is not needed


    FACTORS THAT CREATE MONOPOLY
     Monopolistic companies have a certain resource that
    is unique and not owned by other companies.

     Monopolists can generally enjoy economies of scale


    to very high levels of production.

     Monopoly exists and develops through law, the


    government gives monopoly rights to the company.
    TYPES OF MONOPOLY
     Monopoly According to Reality
    Created because to produce a certain item requires expensive equipment, so
    the entry of another company is hindered by huge capital and investment.

     Natural Monopoly
    Monopoly is created because it controls certain basic materials.

     Juridical Monopoly
    In this case it was created because of the determination by the government

     Artificial Monopoly
    Monopoly is created because it was deliberately made into a monopoly
    STRENGTH IN THE MONOPOLY MARKET
     Production costs are cheaper than in perfectly
    competitive market firms and larger production.

     The quality of goods is increasing and the price of


    goods is getting cheaper.

     The prosperity of the society can be increased if the


    monopoly can continue to produce goods that are
    cheaper with better quality.
    INEFFICIENCY IN THE MONOPOLY MARKET

    Monopolist firms can still make profits that


    are greater than normal profits, and can
    be achieved when the price is still greater
    than the marginal cost. This means that
    resource users are more inefficient in
    monopolies.
    EXAMPLE OF AN INDONESIAN
    MONOPOLY CASE

    PT PLN (Persero) is a State-Owned Enterprise (BUMN) which has


    mandated to provide electricity needs in Indonesia
    PLN CASES

    The electricity crisis peaked when PT. PLN imposed


    unilateral rotating blackouts in various regions
    including Jakarta and its surroundings, during the
    period July 11-25th 2008, and all parties were obliged
    to receive it. This event causes a lot of losses for the
    society, and investors become less interested to
    invest.

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