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. The deal is tough for many to swallow. "We continue to believe that consumers are best served by competition rather than monopolies," said National Association of Broadcasters Vice President Dennis Wharton. What does Wharton argue?

Question

Quizplus · Accepted Answer

Wharton argues that consumer surplus is greater with competition, implying that consumers benefit more when there are multiple providers rather than a single monopoly.

In July 2008, the Federal Communications Commission Approved the Merger