Courses : Intermediate Microeconomics Lecturer : Frischa Adellia Semester : 4th Semester, 2022/2023 Sesion The Meaning Of No Government Intervention One of the characteristics of a perfectly competitive market is the absence of government intervention in the market. This means that the government does not interfere with or regulate the market in any way, such as setting prices or production quotas. The government has no power to influence prices or production in a perfectly competitive market. This means that prices and production quantities are determined entirely by demand and supply from consumers and producers in the market. Therefore, a perfectly competitive market is considered a highly efficient market and produces the most effective and efficient results. However, even if the government does not have the power to regulate the market, it can still provide the necessary framework and regulation to maintain fair and fair competition in the market. Governments can enact laws governing business supervision, competition, and compliance, and issue sanctions for companies that violate laws or public policies. Overall, perfectly competitive markets require minimal, or even no, government interference in market operations. This allows the market to function in the most efficient way and produce the most optimal results for all parties involved in it. However, the government still needs to ensure that healthy and fair competition is maintained in the market and issue sanctions for companies that take actions that are not in accordance with law or public policy. In addition, the absence of government intervention in a perfectly competitive market can also minimize the risk of corruption and collusion that can harm consumers and producers in the market. Governments involved in market regulation can become a source of corruption, and ignore the interests of consumers and producers in the market. However, there is also the view that some form of government intervention is acceptable in a perfectly competitive market, especially if it is done to correct social inequalities and improve people's welfare. For example, governments can provide subsidies or incentives to help small producers or develop less developed markets. However, such interventions must be undertaken with care not to undermine the basic principles of perfectly competitive markets. Overall, the absence of government intervention is one of the important elements in a perfectly competitive market. This allows the market to operate efficiently and produce optimal results for the consumers and producers within it. However, there are several forms of government intervention that are acceptable in a perfectly competitive market if they are carried out with care and the aim is to correct social inequalities and improve people's welfare. However, in practice, it is very difficult to achieve perfect competitive market conditions as a whole. There are various factors and constraints that can prevent the market from achieving these conditions, such as the existence of a monopoly or oligopoly, high entry costs, or structural injustice in the market system. Therefore, government intervention is often required in order to achieve the goal of perfect competition market. This can be done through various public policies, such as strict regulation of monopoly and oligopoly activities, fair and transparent law enforcement, fiscal policies that support small and medium market players, and so on. In perfect competition market conditions, consumers and producers will compete with each other to achieve efficiency in production and fair prices for consumers. This will help ensure that the market operates efficiently and produces optimal results for all parties involved. However, achieving perfectly competitive market conditions is extremely difficult and complex, and requires government intervention in some cases to achieve this goal. On the other hand, even though a perfectly competitive market has several advantages and benefits for both consumers and producers, there are also some criticisms leveled against this concept. Some critics consider that perfectly competitive markets are too idealistic and unrealistic, because it is difficult to achieve all the criteria necessary for the market to function perfectly. In addition, a perfectly competitive market can also generate economic instability, due to significant price fluctuations and uncertainty in the market. However, even though there are criticisms of perfectly competitive markets, this concept remains a reference in economic analysis and public policy. This is because perfectly competitive markets offer an idealized view of how markets should operate, and help identify problems in markets that need to be corrected or corrected through public policy. In addition, a perfectly competitive market can also help encourage innovation and efficiency in the production and distribution of goods and services, which in turn can improve the welfare of society as a whole. Overall, a perfectly competitive market is an ideal concept that shows how the market should operate efficiently and fairly for all parties involved. Even though it is difficult to achieve perfectly competitive market conditions as a whole, this concept remains an important reference in economic analysis and public policy.