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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The standard monopoly model eliminates the monitoring problem by assuming that:
A. the owner does not maximize profit. B. the owner of the firm has no control over decisions. C. the owner of the firm makes all the decisions. D. marginal cost is zero, and so the output at which profit is maximized is the same as the output at which sales revenues are maximized.
Refer to the figure below.________ inflation will eventually move the economy pictured in the diagram from short-run equilibrium at point ________ to long-run equilibrium at point ________, 
A. Rising; B; C B. Falling; A; C C. Falling; A; B D. Rising; A; C