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
A
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List three different types of financial markets and discuss the type of financial instruments traded in the markets
What will be an ideal response?
The bargaining power of buyers increases if
A) the input in question is not a critical component of production. B) there are wide variations in the quality of inputs from supplier to supplier. C) there are many large buyers. D) the input in question has few substitutes.
The amount a household would like to work within a giver period at the current wage rate if it could find the work is referred to as the unconstrained supply of labor.
Answer the following statement true (T) or false (F)
In response to news reports that taking aspirin daily can reduce an individual's risk of a heart attack, there will most likely be a(n)
A. increase in the demand for aspirin. B. increase in the quantity demanded of aspirin. C. increase in the supply of aspirin. D. decrease in the supply of aspirin.