If you want to enjoy a Major League Baseball game at the stadium in St Louis, you must patronize the Cardinals. This makes the Cardinals organization a
A) purely competitive firm in St Louis.
B) monopoly firm in St Louis.
C) monopoly firm in Major League Baseball.
D) purely competitive firm in Major League Baseball.

Question

Quizplus · Accepted Answer

The fact that the Cardinals are the only team in St Louis offering Major League Baseball games creates a monopoly situation in the local market. While there may be competition from other teams in Major League Baseball, this is not relevant for the local market in St Louis. Therefore, the Cardinals organization can be considered a monopoly in St Louis.

If You Want to Enjoy a Major League Baseball Game