Comment separately, in a substantive manner to the 2 following posts that are responding to: 1) Are monopolists guaranteed of making economic profits? and 2) Explain the long run equilibrium situation for a monopolistically competitive industry. Give two examples of industries that fit under this category. POST 1 1) No, monopolists are not guaranteed to make economic profits although it is very likely. Successful monopolies will make huge profits because they can block the entry of new firms and raise prices on a product with no substitutes. However, if the market or economic situation is not on their side they can still lose profits in the long run. For example, if a monopoly's prices are too high and their product isn't a necessity people may stop buying it all together. 2) Assuming that barriers to entry are limited, firms that are making good profit will attract more and more firms. In the short run, these few firms will be able to sell a high quantity at a higher price, but as more firms enter the market and competition rises, demand for each firm will fall and reduce profits to zero. This means that in this scenario, the long run equilibrium has zero economic profit. One example is fast food places like McDonalds and Burger King because they are a similar product but not substitutes. These firms can enter the market fairly easily, as we see many of these firms all over. Another example is spas because two different businesses may offer very similar services, but they are not substitutes. Many spas can open, and customers will choose which they prefer. POST 2 1) Profit is never guaranteed. Monopolists maximize profit based off the demand curve. However, the demand curve does not solidify profit from the maximization. In addition, our economy has set laws and other regulations that prevent the guaranteed profit.

2) Long run monopolistically industry does not eliminate economic profit. They will just adjust to the environment of the market to continue to maximize profit. It also allows for products to be unique and continue to be competitive in order to maintain the demand and appeal to audiences.

Example 1: Tesla is a monopoly in the car industry. Tesla came in and took the car industry by storm with a fully electric vehicle and selling at a significantly lower price than fuel cars while offering the alternative of the electric vehicle.

Example 2: Meta is a dominating the social media industry. After the acquisition of Instagram, Meta has evolved into a ever molding social engine encompassing a wide range of platforms.