monopoly taxa levy imposed by the government on the ABOVE-NORMAL PROFIT earned by a monopolist. Unlike an order to cut prices or RATE-OF-RETURN REGULATION, such a tax does nothing to restore the loss of the CONSUMER SURPLUS imposed by the MONOPOLY back to the consumer. The immediate beneficiary is the government itself, which may decide to use the tax as a means of raising revenue rather than as an anti-monopoly device. See COMPETITION POLICY.
Collins Dictionary of Economics, 4th ed. © C. Pass, B. Lowes, L. Davies 2005