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?
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.
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The Federal Reserve has:
A. made some booms and recessions worse rather than better. B. a good track record of only making booms and recessions better. C. made some recessions worse but generally makes booms better. D. made some booms worse but generally makes recessions better.
A "long-run exploitable Phillips curve" refers to a Phillips curve that in the long run is ________ rather than ________
A) downward sloping; vertical B) vertical; horizontal C) horizontal; upward sloping D) upward sloping; vertical