Because consumers in your town could buy furniture on the Internet or by driving

Question

Because consumers in your town could buy furniture on the Internet or by driving to another town that has a furniture store, you would not have a monopoly under the narrow definition of the term. However, because competition from online sellers and stores in other towns may not be sufficient to eliminate your economic profits in the long run, you may have a monopoly in the broader sense of the term. Here is another follow-up question. Suppose in the same small town where you live there is only one pizzeria. Is that pizzeria a monopoly?

Explanation / Answer

As mentioned Monopoly has a broader sense and has to view what a Monopoly is in that broader sense itself. When it comes to things like clothing, furniture, and other things one can always have an option of choosing it in the stores or online. However when the topic is all about edibles like food one must always look up for the options available in the same area itself. A Pizzeria is one such a case where you have to look up in the town itself and since it is mentioned that there is only one Pizzeria in the town where ordering food online is is not possible from other places and people have only one choice this makes the Pizzeria a Monopoly all in all.

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