Monopoly and Its Relevance in the American Economy - Term Paper Example

Railway transportation is a government monopoly in most of the countries. Usually, the government prohibits private companies from entering into railroad transport and thus makes it a government monopoly. For example, in India, the government is the owner of a railroad and no other competitors are allowed in this field. Monopoly eliminates all type of competition and thus results in the low-quality output. In addition, consumers have no choice to make but forced to buy the item supplied by the monopolist.

Consumers are exploited most of the time. Major League Baseball (MLB) is one of the best examples of monopoly in the US. Major League Baseball refers to the organization that operates the National League and the American League by a joint organizational structure. The structure developed between the National League and the American League since 1901. In 2000, the two leagues ceased to be separate legal entities, with the commissioner's office assuming all responsibilities for running MLB. MLB operates as a single league and it is the most important sports leagues of the United States and Canada.

It is currently composed of 30 teams — twenty-nine in the United States and one in Canada. MLB is governed by the Major League Baseball Constitution. Under the direction of the Commissioner of Baseball, Major League Baseball hires and maintains everything related to baseball from umpiring crews to advertisements. It negotiates marketing, labour, and television contracts. After the 1922 U.S. Supreme Court ruling, Major League Baseball maintains a unique, controlling relationship over the sport, including most aspects of minor league baseball.