Soal dan Jawaban Asistensi PE1 Price discrimination, monopolistik, oligopoli

Guys, ini adalah soal dan jawan bahan asistensi pe1.

soal diambil dari soal UAS tahun-tahun lalu dan jawaban didapat dari parkin edisi 9 dan 10.

semoga bermanfaat.

 

2006/2007 (20%): Price discrimination

Apa yang Anda ketahui tentang persoalan diskriminasi harga dalam pasar monopoli? Jelaskan selengkapnya!

Jawab:

Price discrimination is the practice of selling different units of a good or service for different prices.

To be able to price discriminate, a monopoly must:

1. Identify and separate different buyer types.

2. Sell a product that cannot be resold.

Price differences that arise from cost differences are not price discrimination.

Price discrimination may not be fair, but it is efficient

Resources will be allocated more efficiently in a monopoly market under any price discrimination scenario than under a single-price scenario.

Capturing Consumer Surplus

Price discrimination captures consumer surplus and converts it into economic profit.

A monopoly can discriminate

• Among groups of buyers. (Advance purchase and other restrictions on airline tickets are an example.)
• Among units of a good. Quantity discounts are an example. (But quantity discounts that reflect lower costs at higher volumes are not price discrimination.)

By price discriminating, the firm can increase its profit. In doing so, it converts consumer surplus into economic profit.

In first-degree price discrimination/ Perfect price discrimination, the monopolist behaves as if each unit of the commodity were sold separately to consumers and charges the highest price obtainable for each unit of the commodity.

Perfect price discrimination occurs if a firm is able to sell each unit of output for the highest price anyone is willing to pay. Marginal revenue now equals price and the demand curve is also the marginal revenue curve.

With perfect price discrimination: the profit-maximizing output increases to the quantity at which price equals marginal cost. Economic profit increases above that made by a single-price monopoly. Deadweight loss is eliminated.

The more perfectly a monopoly can price discriminate, the closer its output is to the competitive output (P = MC) and the more efficient is the outcome.

But this outcome differs from the outcome of perfect competition in two ways:

1. The monopoly captures the entire consumer surplus.

2. The increase in economic profit attracts even more rent-seeking activity that leads to inefficiency.

In second-degree price discrimination, the monopolist sets a uniform price per unit for a specific quantity of the commodity, a lower price per unit for a specific additional batch of the commodity, and so on.

Third degree: the monopolist charges different prices for the same commodity in different markets in such a way that the last unit of the commodity sold in each market gives the same MR.

2006/2007 (20%): Monopolistik

Pasar persaingan monopollstik merupakan salah satu bentuk pasar persaingan yang tidak sempurna

1. Sebutkan ciri-ciri dari pasar tersebut dan gambarkan bentuk grafiknya!
2. Apa bedanya bentuk pasar persaingan monopolistik dan pasar monopoli dan mengapa mereka berbeda?
3. Mengapa faktor-faktor seperti kemasan, brand, dan promosi iklan sangat menonjol dalam pasar ini? Jelaskan!

Jawab

Monopolistic competition is a market structure in which

1.        A large number of firms compete.

·   The presence of a large number of firms in the market implies:

·  Each firm has only a small market share and therefore has limited market power to influence the price of its product.

·    Each firm is sensitive to the average market price, but no firm pays attention to the actions of others. So no one firm’s actions directly affect the actions of others.

·    Collusion, or conspiring to fix prices, is impossible.

2.  Each firm produces a differentiated product: A firm in monopolistic competition practices product differentiation if the firm makes a product that is slightly different from the products of competing firms

3.       Firms compete on product quality, price, and marketing.

Product differentiation enables firms to compete in three areas: quality, price, and marketing.

§  Quality includes design, reliability, and service.

§  Because firms produce differentiated products, the demand for each firm’s product is downward sloping. But there is a tradeoff between price and quality.

§  Because products are differentiated, a firm must market its product. Marketing takes the two main forms: advertising and packaging.

4.     Firms are free to enter and exit the industry: There are no barriers to entry in monopolistic competition, so firms cannot make an economic profit in the long run.

Examples of Monopolistic Competition

Producers of audio and video equipment, clothing, jewelry, computers, and sporting goods operate in monopolistic competition.

b. The firm in monopolistic competition operates like a single-price monopoly.

The firm produces the quantity at which MR equals MC and sells that quantity for the highest possible price.

It makes an economic profit (as in this example) when P > ATC.

Monopolistic Competition and Perfect Competition

Two key differences between monopolistic competition and perfect competition are:

• Excess capacity
• Markup

A firm has excess capacity if it produces less than the quantity at which ATC is a minimum.

A firm’s markup is the amount by which its price exceeds its marginal cost.

c. Product differentiation enables firms to compete in three areas: quality, price, and marketing.

§  Quality includes design, reliability, and service.

§  Because firms produce differentiated products, the demand for each firm’s product is downward sloping. But there is a tradeoff between price and quality.

§  Because products are differentiated, a firm must market its product. Marketing takes the two main forms: advertising and packaging.

Advertising

• A firm with a differentiated product needs to ensure that customers know that its product differs from its competitors. Firms use advertising and packaging to achieve this goal. A large proportion of the price we pay for a good covers the cost of selling it. Advertising expenditures affect the firm’s profit in two ways:  They increase costs, and they change demand.
• Coke is a high quality cola, and Oke is a low quality cola. If Coke spends millions on advertising, people think “Coke must be good.” If it is truly good, when they try it, they will like it and keep buying it. If Oke spends millions on advertising, people think “Oke must be good.” If it is truly bad, when they try it, they will hate it and stop buying it. So if Oke knows its product is bad, it will not bother to waste millions on advertising it. And if Coke knows its product is good, it will spend millions on advertising it. Consumers will read the signals and get the correct message. None of the ads need mention the product. They just need to be flashy and expensive.

Brand Names

• Why do firms spend millions of dollars to establish a brand name or image? Again, the answer is to provide information about quality and consistency.
• You’re more likely to overnight at a Holiday Inn than at Joe’s Motel because Holiday Inn has incurred the cost of establishing a brand name and you know what to expect if you stay there.

2010/2011 (20%)

Apa yang dimaksud dengan “pasar oligopoli”? Apa saja karakteristik yang membedakannya dengan pasar monopoli dan pasar persaingan sempurna? Apa pula perbedaannya dengan pasar persaingan monopolistik? Mengapa para oligopolis cenderung berkolusi atau membentuk kartel namun selalu ada insentif untuk melanggar komitmen? Jelaskan jawaban Saudara secara rinkas namun padat!

Oligopoly is a market structure in which

• Natural or legal barriers prevent the entry of new firms.

Either natural or legal barriers to entry can create oligopoly.

there is a natural duopoly—a market with two firms.

• A small number of firms compete.

Because an oligopoly market has only a few firms, they are interdependent and face a temptation to cooperate.

Interdependence: With a small number of firms, each firm’s profit depends on every firm’s actions.

Temptation to Cooperate: Firms in oligopoly face the temptation to form a cartel.

A cartel is a group of firms acting together to limit output, raise price, and increase profit. Cartels are illegal.

Firms in a cartel act like a monopoly and maximize economic profit

To find that profit, we set marginal cost for the cartel equal to marginal revenue for the cartel.

The cartel’s marginal cost curve is the horizontal sum of the MC curves of the two firms and the marginal revenue curve is like that of a monopoly

The firms maximize economic profit by producing the quantity at which MC_I = MR

Each firm agrees to produce 2,000 units and to share the economic profit.

The blue rectangle shows each firm’s economic profit.

For the complier, ATC now exceeds price. The complier incurs an economic loss.

For the cheat, price exceeds ATC. The cheat increases its economic profit.

2007/2008 (20%): Oligopoli

Jika ada 5 sampai dengan 10 produsen bersepakat membentuk kartel, berapakah jumlah barang yang akan mereka jual dan tingkat harga mana yang akan mereka tentukan? Bandingkan perbedaan penentuan jumlah barang yang dijual dan tingkat harganya oleh kartel dengan mekanisme pasar persaingan!

2009/2010 (10%): Oligopoli

Jelaskan kondisi maksimisasi profit pada pasar oligopoli dan apa yang dimaksud dengan kinked demand curve?

Jawab:

2008/2009 & 2011/2012 (7.5%)

1.       Anda kenal bentuk Oligopoli dan Monopolistik

a.       Sebut dan jelaskan karakteristik masing-masing pasar dan implikasinya pada kekuatan (market power) perusahaan di pasar.

b.      Bagaimana caranya perusahaan menentukan jumlah barang (Q) yang akan diproduksi dan tingkat harganya dengan tujuan memaksimumkan keuntungan

Jawab:

b. The Firm’s Short-Run Output and Price Decision

A firm that has decided the quality of its product and its marketing program produces the profit-maximizing quantity (the quantity at which MR = MC).

Price is determined from the demand for the firm’s product and is the highest price that the firm can charge for the profit-maximizing quantity.

Figure 14.1 shows a firm’s economic profit in the short run

The firm in monopolistic competition operates like a single-price monopoly.

The firm produces the quantity at which MR equals MC and sells that quantity for the highest possible price.

It makes an economic profit (as in this example) when P > ATC.

Profit Maximizing Might Be Loss Minimizing. A firm might incur an economic loss in the short run.

Here is an example.

At the profit-maximizing quantity, P < ATC and the firm incurs an economic loss.

In the long run, a firm in monopolistic competition maximizes its profit by producing the quantity at which its marginal revenue equals its marginal cost, MR = MC.

2011/2012 17.5%: Oligopoli (game theory)

2.       PT Unggul dan PT Utama adalah hanya 2 perusahaan pembuat kapal terbang kecil di Indonesia. Setiap perusahaan mempunyai 2 strategi: membiayai Rp30milyar untuk research and development (R&D) atau tidak mengeluarkan biaya untuk R&D.

1. Apabila kedua perusahaan tersebut tidak mengeluarkan biaya untuk R&D, economic profit PT Unggul adalah Rp80milyar dan economic profit PT Utama adalah Rp40milyar.
2. Apabila kedua perusahaan melaksanakan R&D, pangsa pasar akan dapat dipertahankan, akan tetapi profit setiap perusahaan akan lebih rendah karena sejumlah biaya yang dikeluarkan untuk R&D.
3. Apabila PT Unggul melakukan R&D dan PT Utama tidak, maka PT Unggul akan memperoleh economic profit sebesar Rp120milyar, sementara PT Utama mengalami economic loss sebesar Rp20milyar.
4. Apabila PT Utama melakukan R&D dan PT Unggul tidak, maka PT Utama akan memperoleh profit Rp60milyar sedangkan PT Unggul akan mengalami loss sebesar Rp10milyar.

Pertanyaan:

1. Tunjukkan payoff matrix dari game yang dihadapi PT Unggul dan PT Utama.
2. Tunjukkan dimana Nash Equlibrium. Pada Nash Equlibrium, berapa equlibrium profit dari setiap perusahaan?
3. Bagaimana cooperative outcomenya? Apakah perusahaan-perusahaan tersebut akan memperoleh economic profit yang lebih besar apabila melakukan kolusi untuk mencapai cooperative outcome?

Jawab

Game theory is a tool for studying strategic behavior, which is behavior that takes into account the expected behavior of others and the mutual recognition of interdependence.

All games have four common features:

• Rules
• Strategies
• Payoffs
• Outcome

Game Theory

Game theory is an entirely different approach to modeling a firm’s output and price decisions. It allows for the expected actions of all other firms in the market to be explicitly considered in the firm’s decision-making process. Game theory is a big step for the student and need a significant amount of time to develop. This chapter is designed to be flexible and provide you with many options on just how far to go.

The Prisoners’ Dilemma

In the prisoners’ dilemma game, two prisoners (Art and Bob) have been caught committing a petty crime.

Rules:  the setting of the game, the actions the players may take, and the consequences of those actions.

Each is held in a separate cell and cannot communicate with each other.

Each is told that both are suspected of committing a more serious crime.

If one of them confesses, he will get a 1-year sentence for cooperating while his accomplice get a 10-year sentence for both crimes.

If both confess to the more serious crime, each receives 3 years in jail for both crimes.

If neither confesses, each receives a 2-year sentence for the minor crime only.

Strategies: all the possible actions of each player.

Art and Bob each have two possible actions:

1. Confess to the larger crime.

2. Deny having committed the larger crime.

With two players and two actions for each player, there are four possible outcomes:

1. Both confess.

2. Both deny.

3. Art confesses and Bob denies.

4. Bob confesses and Art denies.

Outcome

a.

	PT Utama melaksanakan R&D	PT Utama tidak  R&D
PT Unggul melaksanakan R&D	50,10	120,-20
PT Unggul tidak R&D	10, 60	80,40

b. If a player makes a rational choice in pursuit of his own best interest, he chooses the action that is best for him, given any action taken by the other player:  Nash equilibrium—first proposed by John Nash.

Explain that we’re first going to look at PT Utama thought experiment.

He first asks: suppose that PT Unggul  do R&D . What should I do?

The answer is do and get 10. If I don’t, I get -20. Lebih baik saya membuat R&D

He next asks: suppose that PT Unggul  don’t R&D. What should I do?

The answer is do and get 60. If I don’t, I get 40. Lebih baik saya membuat R&D

PT Unggul

He first asks: suppose that PT Utama  do R&D . What should I do?

The answer is do and get 50. If I don’t, I get -10. Lebih baik saya membuat R&D

He next asks: suppose that PT Unggul  don’t R&D. What should I do?

The answer is do and get 120. If I don’t, I get 80. Lebih baik saya membuat R&D

Nash eq: 50,10

c. cooperative outcome: 80,40

2006/2007 (20%): Oligopoli

Pasar duopoli merupakan contoh sederhana dari pasar Oligopoli. Mengingat bahwa penjual menjual barang yang sama, maka sering kali mereka melakukan komitmen untuk tetap menghasilkan keuntungan besar.

1. Tunjukkan dan jelaskan dengan menggunakan matriks prisoners dilemma bahwa mempertahankan komitmen merupakan hal yang sulit dan tidak rasional bagi setiap individu.
2. Gambarkan dan jelaskan bentuk kurva permintaan dan penawaran dari pasar oligopoly! Hubungkan jawaban Anda dengan kondisi bahwa terjadi aliansi antara penentu harga (price leader) dan pengikut harga (price follower).
3. Apa pula yang dimaksud dengan kinked demand curve?

Jawab:

b. Price leadership is the form of imperfect collusion in which the firms in an oligopolistic industry tacitly

(i.e., without formal agreement) decide to set the same price as the price leader for the industry. The price leader may be the low-cost firm, or more likely, the dominant or largest firm in the industry. In the latter case, the dominant firm sets the industry price, allows the other firms in the industry to sell all they want at that price, and then the dominant firm comes in to fill the market.

c. As a further development toward more realistic models, we have the kinked demand curve or Sweezy model. This tries to explain the price rigidity often observed in oligopolistic markets. Sweezy postulates that if an oligopolistic firm increases its price, others in the industry will not raise theirs and so the firm would lose most of its customers. On the other hand, an oligopolistic firm cannot increase its share of the market by lowering its price since the other oligopolists in the industry will match the price cut. Thus there is a strong compulsion for the oligopolist not to change the prevailing price but rather to compete for a greater share of the market on the basis of quality, product design, advertisement, and service.