Professional Sports Teams: Unregulated Monopolies in the US

What type of monopoly are professional sports teams in the US considered?

1) regulated monopoly
2) pubLiCly owned monopoly
3) unregulated monopoly
4) profitable monopoly

Answer:

Professional sports teams in the U.S. are considered unregulated monopolies.

Professional sports teams in the U.S. are often considered to be unregulated monopolies. This term refers to companies or organizations that dominate their respective industries or sectors without significant government regulation dictating their operations.

Unlike regulated monopolies, which typically operate in industries considered vital for society such as utilities (electricity, water supply, and garbage collection), where the government ensures that consumers have access to necessary services at a reasonable cost, professional sports teams operate in a more competitive and less restricted environment. However, they do benefit from certain protections and league rules that limit competition to a degree.

True monopolies in the U.S., such as utilities, are usually natural monopolies. They are regulated because their operations involve large fixed costs and economies of scale make it more efficient for a single firm to provide services at a lower cost to consumers than if multiple competitive firms existed.