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Why are sports franchises often argued

01 / 10 / 2021 Projects

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Why are sports franchises often argued

Answer the following related to monopoly power for sports franchises.a) Why are sports franchises often argued to have a natural monopoly? And, in whatdo they have a natural monopoly?b) Why is it that the Marginal Revenue (MR) is always below the Demand (D) curveat any given quantity for a monopoly? Explain intuitively. (it may be beneficialto provide a numeric example)c) Graphically demonstrate and explain intuitively why it may not be wise to breakup a natural monopoly (a sports franchise) into two smaller firms.

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