monopoly profit


Also found in: Encyclopedia, Wikipedia.

monopoly profit

the long-term ABOVE-NORMAL PROFIT accruing to a monopolist. See MONOPOLY.
References in periodicals archive ?
26) These arguments rest largely on the theory that there is a single monopoly profit in any distribution chain.
They may recognize that the flow of monopoly profit (or rants from previous innovative activities) exceeds the total flow of duopoly or competitors profits, and seek a settlement that maintains the monopoly outcome for both of them.
There exists no more an argument in justice, or a moral case, against such a monopolist making a monopoly profit than there is against anyone who decides that he will work no more than he finds worth his while.
24) Einer Elhauge, Tying, Bundled Discounts, and the Death of the Single Monopoly Profit Theory, 123 Harv.
The FTC's usual concern is that by entering into these settlements the pioneer gets to keep its monopoly profit margins as a result of the cheaper generic's delayed entry in the market, and in return gives a percentage of these profits to the generic.
What a static model refers to as monopoly profit is better seen in a dynamic setting as an indicator of the welfare gain that was produced by the innovation that provided the market share advantage to the seller.
If only one firm has completed the research project, the firm earns a per-period monopoly profit of [[pi].
Furthermore, from equations (13)-(15) we can find how changes in parameter [alpha] can affect the pricing policy of a monopoly profit maximizer.
As before, let the monopoly profit level be denoted by rim and the profit level associated with [P.
Substituting [7] into [6], optimal monopoly profit can be expressed as:
V) If B = (a - c) / 2b, then the equilibrium price coincides with a monopoly price, and each firm earns half of the monopoly profit.
The results rule out the extreme model of collusion leading to joint monopoly profit maximization.