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:

Serious Family Violence

Acts of family violence characterized by severe physical harm, serious emotional abuse, or life-threatening actions towards family members.

Rate

A measure, quantity, or frequency, typically one measured against another quantity or measure.

Statistics

The science of collecting, analyzing, interpreting, and presenting numerical data, often to identify patterns or trends.

Child Abuse

Any act or failure to act by a parent or caregiver that results in actual or potential harm to a child, including physical, emotional, sexual abuse, or neglect.