Monopoly

I live in Gockhausen, which is a very small village surrounded by forest. In this village there is only one hair dresser. For people who don't have a car, who are not able to go to town or who don't want to go to town only for getting a haircut, this is the only opportunity to go to a hair dresser. Especially for older people; this is an advantage. This firm has characteristics of a monopoly firm, such as producing a unique product in Gockhausen, since it is the only hairdresser in vicinity. This means that they are single sellers of the product in Gockhausen. Furthermore they are price makers. The danger, the hairdresser in Gockhausen faces is that more people might go to town to a hairdresser than go in Gockhausen, so that there is not enough demand for their product. However, monopolies are non-price competitors, meaning they don't attract customers by lowering the price; they attract them by having sales or packages or flat rates, as well as advertisement. Therefore the hairdresser in Gockhausen makes a lot of announcements and advertisement in the newspaper as well as flat rates and special offers. I think it is also important whether the hairdresser is older and normal or modern, young and lively. What would need to be true for the firm to be a pure monopoly is that there is no other hairdresser in Zurich and vicinity.