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monopoly profit
== Basic Definition ==
In economics a monopoly is a firm that lacks any viable competition, and is the sole producer of the industry's product.〔Bradley R. chiller, "Essentials of Economics", New York: McGraw-Hill, Inc., 1991.〕〔Edwin Mansfield, "Micro-Economics Theory and Applications, 3rd Edition", New York and London:W.W. Norton and Company, 1979.〕〔Roger LeRoy Miller, "Intermediate Microeconomics Theory Issues Applications, Third Edition", New York: McGraw-Hill, Inc, 1982.〕〔Tirole, Jean, "The Theory of Industrial Organization", Cambridge, Massachusetts: The MIT Press, 1988.〕〔John Black, "Oxford Dictionary of Economics", New York: Oxford University Press, 2003.〕 In a normal competitive situation, no firm can charge a price that is significantly higher than the Marginal (Economic) cost of producing (the last unit of) the product.〔〔 If any firm doing business within a competitive situation tries to raise prices significantly higher than the Marginal cost of producing the product, it will lose all of its customers to either other existing firms that charge lower prices, or to a new firm that will find it profitable to use a lower price (closer to its marginal cost) to take customers away from the firm charging the higher price.〔〔〔 But since the monopoly firm does not have to worry about losing customers to competitors, it can set a ''Monopoly price'' that is significantly higher than its marginal cost, allowing it to have an economic profit that is significantly higher than the normal profit that is typically found in a perfectly competitive industry.〔〔〔 The high economic profit obtained by a monopoly firm is referred to as monopoly profit.
The existence of a monopoly, and therefore the existence of a monopoly price and monopoly profit, depend on the existence of barriers to entry: these stop other firms from entering into the industry and sapping away profits.〔
抄文引用元・出典: フリー百科事典『 ウィキペディア（Wikipedia）』
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