Certain monopolistically competitive industries exist with important entry barriers. In such industries firms are able to maintain profits over the long run. In other words, owners earn more than they would in their next best alternative activity.

    In most such industries the entry barrier is a license of some type, one that must be purchased or earned through education and testing. If a license is easy to obtain it isn't much of a barrier to entry and so profits will be nearly zero.

    Examples of monopolistically competitive industries with barriers to entry include: the medical profession, the legal profession, taxi cab services in some cities, bars nightclubs and restaurants in some cities.

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