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In July 2008, the Federal Communications Commission Approved the Merger

Question 497

Multiple Choice

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. What do you predict will happen to efficiency in the market for satellite radio?


A) Deadweight loss will increase when an industry moves from competition to monopoly.
B) Consumer surplus will increase when an industry moves from competition to monopoly.
C) Producer surplus will decrease when an industry moves from competition to monopoly.
D) Total surplus will increase when an industry moves from competition to monopoly.

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