In a small town next to Pfäffikon, the town where I live, there is a wine maker and seller. It is the only wine maker in the area. When you drive through the area you will see many sloped fields filled with grape plants. These fields are owned by the wine maker. Since it is the only wine sell and producer in the area it can be regarded as a monopoly for wine. Consumers do not have to buy the wine from the wine maker in the town because they could go to the neighboring village and get foreign wine but not enjoy the local wine.
The wine maker in my town is a monopoly. It is the only firm in the market that supplies local wine from the region. It can thus make its own prices because it is unique and regional, it is a price maker. It is also the only producer of the unique wine from the region. Lastly, it frequently uses non-price competition such as free wine tasting gatherings and advertisements in the local newspaper. Furthermore, the winemaker is a monopoly because it has set high barriers to entry. For the most part the winemaker owns the entire agricultural region where he grows his grape plants.
If the winemaker were to be a pure monopoly, it would have to set higher barrier of entry, buying even more agricultural land in the region, owning all the resources and making it impossible for other firms to enter the market for the regional wine.
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