Topic Videos
Key Diagrams - Monopoly Supernormal Profit
- Level:
- A-Level, IB
- Board:
- AQA, Edexcel, OCR, IB, Eduqas, WJEC
Last updated 14 May 2022
This short revision video looks at the diagram used to show supernormal profit earned by a monopoly supplier.
A firm is said to reap monopoly profits when a lack of viable market competition allows it to set its prices above the competitive equilibrium price for a good or service without losing profits to competitors. Barriers to entry protect monopoly profit in the long run. Profit margins for a monopolist will tend to be higher when the coefficient of price elasticity of demand for their product is low.
You might also like
Amazon agrees e-book pricing deal with major publisher
21st October 2014
Growing Challenges Facing Privatised Royal Mail
17th October 2014
Tim Harford on Monopoly and Innovation
27th August 2014
Profit Satisficing and Profitability Factors
30th January 2014
Profit
Study Notes
Profit Maximisation
Study Notes
Functions of Profit
Study Notes