Monopoly price

monopoly pricing
A Monopoly price is set by a Monopoly.wikipedia
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Monopoly

monopoliesmonopolisticmonopolist
A Monopoly price is set by a Monopoly. Because a monopoly faces no competition, it has absolute market power, and thereby has the ability to set a monopoly price that will be above the firm's marginal (economic) cost. A monopoly occurs when a firm lacks any viable competition, and is the sole producer of the industry's product. Although the term "markup" is sometimes used in economics to refer to difference between a Monopoly Price and the Monopoly's Marginal Cost (MC), the term markup is frequently used in American Accounting and Finance to define the difference between the Price of the Product and its per unit Accounting Cost.
Monopolies are thus characterized by a lack of economic competition to produce the good or service, a lack of viable substitute goods, and the possibility of a high monopoly price well above the seller's marginal cost that leads to a high monopoly profit.

Monopoly profit

monopoly priceMonopoly Profit § PersistencePersistence" in the ''Monopoly Profit'' discussion
Because a monopoly faces no competition, it has absolute market power, and thereby has the ability to set a monopoly price that will be above the firm's marginal (economic) cost. The Mathematical Profit Maximization Conditions ("First Order Conditions") ensure the price elasticity of demand must be less than negative one; since no "Rational Firm" that attempts to maximize its profit would incur additional Cost (a positive Marginal Cost) in order to Reduce Revenue (when MR < 0).
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.

Competition

competitorcompetitionscompetitive
A monopoly occurs when a firm lacks any viable competition, and is the sole producer of the industry's product.

Product (business)

productproductsmerchandise
A monopoly occurs when a firm lacks any viable competition, and is the sole producer of the industry's product.

Market power

pricing powerprice takerprice takers
Because a monopoly faces no competition, it has absolute market power, and thereby has the ability to set a monopoly price that will be above the firm's marginal (economic) cost.

Marginal cost

marginal costsmarginalmarginal cost pricing
Because a monopoly faces no competition, it has absolute market power, and thereby has the ability to set a monopoly price that will be above the firm's marginal (economic) cost.

Profit (economics)

profitprofitsprofitability
The Mathematical Profit Maximization Conditions ("First Order Conditions") ensure the price elasticity of demand must be less than negative one; since no "Rational Firm" that attempts to maximize its profit would incur additional Cost (a positive Marginal Cost) in order to Reduce Revenue (when MR < 0).

Cost

expenditurescostscosts of production
Although the term "markup" is sometimes used in economics to refer to difference between a Monopoly Price and the Monopoly's Marginal Cost (MC), the term markup is frequently used in American Accounting and Finance to define the difference between the Price of the Product and its per unit Accounting Cost. Accepted Neo-Classical Micro-Economic Theory indicates the American Accounting and Finance definition of markup, as it exists in most Competitive Markets, solely ensures an "Accounting Profit" that will be just enough to solely compensate the Equity owners of a "Competitive Firm" within a "Competitive Market" for the "Economic Cost" ("Opportunity Cost") they must bear when they decide to hold on to the Firm's Equity. The "Economic Cost" of holding onto Equity at its Present Value is the "Opportunity Cost" the Investor must bare when he gives up the Interest Earnings on Debt of similar Present Value (He holds onto Equity instead of the Debt).

Marginal product of labor

marginal productivity of labordiminishing marginal productlow-productivity

Perfect competition

perfectly competitiveperfect marketimperfect market
On the other hand, a competitive firm by definition faces a perfectly elastic demand, hence it believes \eta=0 which means that it sets price equal to marginal cost.

Markup rule

markup
Although the term "markup" is sometimes used in economics to refer to difference between a Monopoly Price and the Monopoly's Marginal Cost (MC), the term markup is frequently used in American Accounting and Finance to define the difference between the Price of the Product and its per unit Accounting Cost.

Markup (business)

markupmarkupsmark-up
Although the term "markup" is sometimes used in economics to refer to difference between a Monopoly Price and the Monopoly's Marginal Cost (MC), the term markup is frequently used in American Accounting and Finance to define the difference between the Price of the Product and its per unit Accounting Cost. Accepted Neo-Classical Micro-Economic Theory indicates the American Accounting and Finance definition of markup, as it exists in most Competitive Markets, solely ensures an "Accounting Profit" that will be just enough to solely compensate the Equity owners of a "Competitive Firm" within a "Competitive Market" for the "Economic Cost" ("Opportunity Cost") they must bear when they decide to hold on to the Firm's Equity.

Accounting

accountancyaccountantaccounting profession
Although the term "markup" is sometimes used in economics to refer to difference between a Monopoly Price and the Monopoly's Marginal Cost (MC), the term markup is frequently used in American Accounting and Finance to define the difference between the Price of the Product and its per unit Accounting Cost. Accepted Neo-Classical Micro-Economic Theory indicates the American Accounting and Finance definition of markup, as it exists in most Competitive Markets, solely ensures an "Accounting Profit" that will be just enough to solely compensate the Equity owners of a "Competitive Firm" within a "Competitive Market" for the "Economic Cost" ("Opportunity Cost") they must bear when they decide to hold on to the Firm's Equity.

Finance

financialfinancesfiscal
Although the term "markup" is sometimes used in economics to refer to difference between a Monopoly Price and the Monopoly's Marginal Cost (MC), the term markup is frequently used in American Accounting and Finance to define the difference between the Price of the Product and its per unit Accounting Cost. Accepted Neo-Classical Micro-Economic Theory indicates the American Accounting and Finance definition of markup, as it exists in most Competitive Markets, solely ensures an "Accounting Profit" that will be just enough to solely compensate the Equity owners of a "Competitive Firm" within a "Competitive Market" for the "Economic Cost" ("Opportunity Cost") they must bear when they decide to hold on to the Firm's Equity.

Price

market pricepricesretail price
Although the term "markup" is sometimes used in economics to refer to difference between a Monopoly Price and the Monopoly's Marginal Cost (MC), the term markup is frequently used in American Accounting and Finance to define the difference between the Price of the Product and its per unit Accounting Cost.

Competition (economics)

competitionmarket competitioncompetitive market
Accepted Neo-Classical Micro-Economic Theory indicates the American Accounting and Finance definition of markup, as it exists in most Competitive Markets, solely ensures an "Accounting Profit" that will be just enough to solely compensate the Equity owners of a "Competitive Firm" within a "Competitive Market" for the "Economic Cost" ("Opportunity Cost") they must bear when they decide to hold on to the Firm's Equity.

Profit (accounting)

profitprofitsprofitability
Accepted Neo-Classical Micro-Economic Theory indicates the American Accounting and Finance definition of markup, as it exists in most Competitive Markets, solely ensures an "Accounting Profit" that will be just enough to solely compensate the Equity owners of a "Competitive Firm" within a "Competitive Market" for the "Economic Cost" ("Opportunity Cost") they must bear when they decide to hold on to the Firm's Equity.

Present value

cash optionpresent discounted valuediscounted
The "Economic Cost" of holding onto Equity at its Present Value is the "Opportunity Cost" the Investor must bare when he gives up the Interest Earnings on Debt of similar Present Value (He holds onto Equity instead of the Debt).

Opportunity cost

opportunity costshidden costhidden costs
The "Economic Cost" of holding onto Equity at its Present Value is the "Opportunity Cost" the Investor must bare when he gives up the Interest Earnings on Debt of similar Present Value (He holds onto Equity instead of the Debt).

Interest

simple interestrate of interestinterest rates
The "Economic Cost" of holding onto Equity at its Present Value is the "Opportunity Cost" the Investor must bare when he gives up the Interest Earnings on Debt of similar Present Value (He holds onto Equity instead of the Debt).

Bond (finance)

bondsbondbond issue
The "Economic Cost" of holding onto Equity at its Present Value is the "Opportunity Cost" the Investor must bare when he gives up the Interest Earnings on Debt of similar Present Value (He holds onto Equity instead of the Debt).