A successful local entrepreneur opens up the only Chevrolet dealership in a medium sized Texas town. Why does this not necessarily constitute a monopoly position?

What will be an ideal response?

First of all it may be that even though there are no Chevrolet dealerships in town that doesn't imply that there aren't any other competitors like Ford, Chrysler, Toyota or Honda. And even if that wasn't' the case buyers may find it useful to car shop in nearby towns.