Before Their Merger, XM and Sirius Were Competing Sellers in the U.S

question 19

Multiple Choice

Before their merger, XM and Sirius were competing sellers in the U.S. satellite radio market. The U.S. Department of Justice allowed the merger even though it created a single seller in the market. Why might we expect this merger to have limited impact on U.S. consumers?

• A) There are many close substitutes for satellite radio service (e.g., free AM-FM radio, internet radio)
• B) The merged firm is likely to act on behalf of its customers and keep its prices and profits low
• C) U.S. consumers are known to have perfectly inelastic demand for satellite radio (i.e., they are unresponsive to price changes)
• D) all of the above are correct

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Definitions:

Personality

The unique combination of emotional, thought, and behavioral patterns that define an individual's characteristic ways of behaving, thinking, and feeling.

Self-concept

An individual's perception of themselves, encompassing beliefs about one's abilities, appearance, and personality traits, forming the basis of self-identity.

Ideal Self

A person's conception of how they would like to be, often serving as a motivator for self-improvement and goal setting.

Actual Self

The self-concept that is based on one's current attributes, beliefs, and behaviors, representing who one actually is at present.