Finally, for completion we show a monopolist earning exactly zero profits. Here Profit = TR (P* x Q*) - TC (ATC* x Q*) = 0. Another way to express this is Profit = (P* - ATC*) x Q* = 0.

    This too is an equilibrium position, but as long as there are barriers to entry long run profitability is also an equilibrium. The difference here is that no barriers are required when profits are zero. Still, what's the point of being a monopolist if you don't earn more than you would in a competitive industry?

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