Which of the following best approximates a pure monopoly?
a. The NFL.
b. The steel market.
c. The oil market.
d. The fast-food market.
Answer: a. The NFL.
The NFL most resembles a pure monopoly among the four leagues in consideration. This is the situation when the industry of economic significance is controlled by a single company and or supplier and there are no other close substitutes in the market. The NFL alone represents a top-level professional football in the United States and hence enjoys monopoly until its counterparts in the NFLE rise to offer competition. Other leagues related with professional football such as XFL or USFL attempted this goal but they simply could not offer a proper competition. In some ways the NFL has full leverage over aspects such as the broadcasting of games, ticket prices and contract negotiations for players. Thus, based on the comparison, we can conclude that NFL is the closest to being an example of a monopoly among all the options that were provided which, nevertheless, has some competition in the form of college football.
Leave a Reply