Economic System In Indonesia

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INTRODUCTION As known, Historically Indonesia have Pancasila and UUD 1945 as their foundation. Therefore, all forms of community, state, and economy system activities in Indonesia must be based on Pancasila and UUD 1945. The system of Indonesia’s economy which based upon Pancasila and UUD 1945 is arranged to create democracy economic and used as the basis of economic development. The Indonesia’s economic system which based on Pancasila and UUD 1945 called democracy economic system. Thus, the democracy economic system can be defined as the national economic system which is one of the results of Pancasila and UUD 1945 philosophy that evenly distributed from, by and for the citizen under the leadership and supervision from government. Regarding…show more content…
So any process that brings between buyers and seller, it will established the price agreement between buyer and seller. Market structure is the organizational characteristics that influence the nature of the market and price competition in the market. There are several types of Market model, such as 1. Perfect competition market 2. Monopolistic competition market 3. Oligopoly market 4. Pure monopoly market Types OF Market Model 1. Perfect competition…show more content…
In perfect competition the number of seller and buyer is not limited and several products are similar, and in perfect competition market the government does not intervene in the price of products. We can see from the perfect market, the price is determined by market mechanism of demand and supply. Consumers also have strong ability to bargaining the price of product that caused the seller get more difficulty to get an over profit or above their average. 2. Imperfect competition market Imperfectly competitive market is a market that is not perfectly organized, or form of market where one of the characteristics of a perfectly competitive market are not met. Imperfectly competitive market consists of the market monopoly, oligopoly, and monopolistic competition. a. Monopoly Competition Market Monopoly market is a form of interaction between supply and demand where there is only one vendor/ manufacturer dealing with many buyers or consumers. Monopoly market have characteristics: 1. there is only one producer who mastered deals 2. producers have the authority or power to determine the price 3. no other entrepreneurs who could enter the market because there are obstacles in the form of corporate excellence The causes of its happening monopoly market: 1. control of

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