monopoly profit


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monopoly profit

the long-term ABOVE-NORMAL PROFIT accruing to a monopolist. See MONOPOLY.
References in periodicals archive ?
patent holder would secure an injunction and earn the monopoly profit.
What has come to be known as "Baxter's law" posits that rate-regulated monopolists may extract monopoly profits from vertically integrated markets without running afoul of the "one monopoly profit" theorem.
(2) Second, Bork viewed competitive harm as implausible because there was only a "single monopoly profit" that would be unaffected by the merger (except under rare circumstances).
Facebook has monopoly profit margins, so it can easily provide real staffing to protect against discrimination, if it wanted to.
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.
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.
Obviously, the leader invests earlier than the follower, so he can enjoy a monopoly profit for some time and occupy a large market share.
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.
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.sub.L] be [[PI].sub.L].
Substituting [7] into [6], optimal monopoly profit can be expressed as:
The results rule out the extreme model of collusion leading to joint monopoly profit maximization.