What Is Monopoly Profit?

Monopoly profit is the high profit that monopoly enterprises obtain by virtue of their monopoly position in social production, which exceeds the average profit. High monopoly profits are generally achieved by setting monopoly prices. The monopoly price is set with a "target profit rate" which is higher than the average profit rate formed under free competition. This way, the monopoly company manipulates the monopoly price by virtue of its monopoly position, and promotes the actual profit rate to be consistent with the "target profit rate" , You can obtain monopoly profits with greater certainty.

Monopoly profit

Chasing profits is the sole purpose and decisive motive of capitalist production.

In the pre-monopoly capitalist period,

The realization of monopoly profits: mainly through

Earlier reform of the resource tax led to a 5% resource tax on oil and natural gas. This is an improvement because the cost-profit ratio of the oil sector is seven or eight times higher than that of other competitive sectors. This part of the resource income should be shared by the whole society, should receive public finances, and be used for public services, but the 5% resource tax is too small in my opinion and is far from enough. Therefore, one of the reforms of resource tax is to widen not only oil and gas, but also coal and other mineral resources sectors. Second, we must increase our efforts. Third, there is a step tax to distinguish the income from different steps. Fourth, taxing on sales income or sales price is worse than taxing on profits because ad valorem tax is transferable. You charge me 5% and I increase the price by 5%. As a result, they are all transferred downstream. In the end, the consumer burden is equal to not levying taxes on it. There is no way to shift to a tax on profits.