In July 2008, the Federal Communications Commission approved the merger of satellite radio providers XM Satellite and Sirius Satellite Radio, establishing a single satellite radio company in America
Under the terms of the deal, the companies agreed not to raise prices for the next three years. Why would the FTC require prices not to increase for three years? A) Compared to competition, monopolies are always worse for consumers.
B) Compared to competition, monopolies restrict output and charge higher prices.
C) Compared to competition, monopolies increase prices and output.
D) Compared to competition, monopolies restrict output and charge lower prices.
B
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