Analysis of The Market Structure: Perfect Competition and Monopoly In The Purwokerto Cermai Market
DOI:
https://doi.org/10.65310/4344da07Keywords:
Cermai Market, market structure, monopoly, perfect competition, traditional marketAbstract
This study examines the theoretical characteristics of perfect competition and monopoly and their conceptual relevance to trading activities at Cermai Market in Purwokerto. A descriptive qualitative approach using library research was employed to analyze secondary sources consisting of microeconomics books, scientific journal articles, and other academic publications. Literature was examined through data reduction, data presentation, and conclusion drawing, focusing on seller concentration, product characteristics, market entry barriers, pricing mechanisms, and market power. The findings indicate that perfect competition involves numerous independent sellers, relatively homogeneous products, accessible market information, limited individual pricing power, and unrestricted market entry. Monopoly is characterized by effective supplier dominance, substantial entry barriers, limited product substitutes, and greater pricing discretion. The analysis further demonstrates that market structure cannot be determined solely by the number of sellers because product differentiation, consumer alternatives, distribution relationships, and competitive behavior also influence market conditions. The study contributes a comparative conceptual framework for evaluating competitive characteristics in traditional markets. However, the absence of direct observations, interviews, and transaction-level data prevents empirical identification of the prevailing market structure at Cermai Market. Further empirical investigation is necessary to assess commodity-specific competition, pricing practices, entry conditions, and supplier alternatives.
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