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In the United States, major league baseball is exempt from antitrust laws. Before 1975, the ...

In the United States, major league baseball is exempt from antitrust laws. Before 1975, the baseball team owners agreed to hold an annual draft of amateur baseball players. Once the players were drafted and signed by a team, they were effectively tied to that team for life. This allowed baseball owners to operate like ________ in the market for player services.
A) perfect competitors
B) monopolistic competitors
C) a monopsonistic cartel
D) a monopoly

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Microeconomics

Edition: 8^th

Author: Pindyck

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