2.) Answer the following related to monopoly power for sports franchises.

a) Why are sports franchises often argued to have a natural monopoly? And, in what do they have a natural monopoly? 

b) Why is it that the Marginal Revenue (MR) is always below the Demand (D) curve at any given quantity for a monopoly? Explain intuitively. (it may be beneficial to provide a numeric example) 

c) Graphically demonstrate and explain intuitively why it may not be wise to break up a natural monopoly (a sports franchise) into two smaller firms