XM Satellite Radio and Sirius Satellite, who are the only major ...

[JGIBBSON]

XM Satellite Radio and Sirius Satellite, who are the only major satellite radio companies serving the United States, were given permission in March of 2008 by the Justice Department to merge.
 
  Can you think of any reasons why there was no real worry about monopoly power?

Question 2

Refer to Table 1-3. Using marginal analysis, by how many hours should Santiago extend his store's hours of operations?
 
  A) 2 hours B) 3 hours C) 4 hours D) 5 hours E) 6 hours

[fwbard]

Answer to Question 1

It's always important to properly define the market. Even if the merger results in one satellite company that does not mean that the firm has a monopoly. After all, there are plenty of substitutes for satellite radio. Also it is likely that mobile phones with Internet connections will be able to offer the same kind of service in the future and may represent new competition as well.

Answer to Question 2

C

[JGIBBSON]

Gracias!

[bimper21]

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