In the case of perfectly elastic supply, the supply curve is:

There were initially two satellite radio providers in the U.S. market, Sirius and XM Radio. The firms merged to form one firm, and the federal government did not challenge the merger

Although the merger created a single seller in this market, the existence of a monopoly may not have much impact on U.S. consumers. Which of the following statements are plausible reasons for the limited impact of the merger? A) There are very large fixed costs in providing satellite radio, and the industry may be a natural monopoly. One seller may be able to operate at lower cost than two sellers. B) Although there will only be one seller of satellite radio, there are other forms of radio broadcasts available to U.S. consumers and demand for satellite radio may be relatively elastic. C) The merged firm will operate at higher capacity and may be able to reduce costs through economies of scale and perhaps learning-by-doing, which will benefit U.S. consumers. D) all of the above

If a price ceiling is set above the equilibrium price, then

A. prices will fall as soon as the ceiling price is abolished. B. prices will remain the same (not rise) when the price ceiling is lifted. C. equilibrium price and ceiling prices are two totally different concepts and hence do not affect each other. D. prices will begin to rise rapidly when the price ceiling is lifted.