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AleksAgata [21]
2 years ago
5

There were initially two satellite radio providers in the U.S. market, Sirius and XM Radio. The firms merged to form one firm, a

nd the federal government did not challenge the merger. Although the merger created a single seller in this market, the existence of a monopoly may not have much impact on U.S. consumers. Which of the following statements are plausible reasons for the limited impact of the merger?
a. The merged firm will operate at higher capacity and may be able to reduce costs through economies of scale and perhaps learning-by-doing, which will benefit U.S. consumers.
b. Although there will only be one seller of satellite radio, there are other forms of radio broadcasts available to U.S. consumers and demand for satellite radio may be relatively elastic.
c. There are very large fixed costs in providing satellite radio, and the industry may be a natural monopoly. One seller may be able to operate at lower cost than two sellers.
d. all of the above
Business
1 answer:
Delicious77 [7]2 years ago
7 0

Answer: a. The merged firm will operate at higher capacity and may be able to reduce costs through economies of scale and perhaps learning-by-doing, which will benefit U.S. consumers.

Explanation:

A merger occurs when two companies comes together and becomes one. This is done in order to expand the recah of a company, gain a market share, and also expand into new segments.

The plausible reasons for the limited impact of the merger will be because the merger will lead to the operation at a higher capacity which will ensure that there's cost reduction through economies of scale which will be beneficial to the consumers.

You might be interested in
A(n) __________ is a set of guidelines for a business to follow when recruiting prospective employees.
Nezavi [6.7K]

Answer:

recruitment policy

Explanation:

A recruitment policy is a statement on how you hire. It outlines your company's preferred hiring practices and promotes consistency within your employee recruiting process

3 0
2 years ago
. lflandis purchased as a building site, the cost of removing existing structures is not charged to the Land account. 12. Deprec
vitfil [10]

Answer:ers 1 it should be included in the land account, 2 it is a process of allocation of cost of the asset. 3 A stock is not the same as cash dividend , 4 Business entity concept, 5 Going concern concept, 6 capital is more accumulated in a corporation than in most other forms of business, 7 corporate income is taxed twice, 8 owners has unlimited liability on corporate debt, 9 The ownership right is easily transferred, 10 to reduce the par or stated value per share.

Explanation:

1 . The cost of removing the existing structure should be included in the land account, in the sense that, It is the cost of preparation of the land for the purpose for which it was purchased.

2. Depreciation can be defined as a decrease or fall in the value of fixed asset, it is the part of the cost of fixed asset consumed during the period of use of the asset by the firm. It allocated that is set to measure the service the asset has provided during the accounting period.

3. A stock is the collection of shares into a bundle or consolidated shares, while a cash dividend is the return given to shareholders based on their investment in shares in the company.

4. The accounting concept of business entity states that, a business is seen as a separate legal entity different from its owners in order to know exactly what the capital employed by the owner's have yielded. When a business is to be sued it is sued in it is own name and not in the name of the owner's of the business.

5. This is the accounting concept of going concern which states that, a business is going to last forever, it is not expected to be liquidated or reduce their scale of operations in the future. This assumption is however broken when there is a voluntary or compulsory liquidation. The death of a shareholder or any members of the board does not bring the business to an end.

6. Capital is more accumulated in a corporation than in most other forms of organization in the sense that, capital can be obtained from different sources such as sales of shares, Debentures, Bank loan and overdraft, Trade credit, Equipment Leasing

7. Corporate income that is distributed to shareholders is taxed twice in the sense that, the company when they made their profit they are made to paid corporate income tax to the government through the tax authority, and when the income is distributed to shareholders in form of dividend the shareholders are also expected to pay tax on the dividend they received from the company.

8. Owners has unlimited liability on corporate debt in the sense that, if the company goes into liquidation, the shareholders can only lose the capital they contributed in form of shares and will not be asked to pay anything further in order to settle the debt of the company.

9.The transfer of shares in a corporation by shareholders does not required the consent of anybody thus it can be easily transferred. A corporation has the advantage of allowing the shareholders to transfer their capital which are in form of shares at will if they feel dissatisfied with the company.

10. Stock split is the method of increasing the number of outst

3 0
3 years ago
Listed below are several transactions that took place during the first two years of operations for the law firm of Pete, Pete, a
umka2103 [35]

Answer:

<u>Cash Flow</u>

year 1: cash generated in operating activities:    35,000

year 2: cash used in operating activities (28,000)

<u>Receivables:</u>

year 1: 23,000

year 2: 40,000

<u>Net Income</u>

year 1: 32,000

year 2: 59,000

Explanation:

<u></u>

Cash flow:

<u>operating activities: year 1</u>

collected from client                    170,000

salaries paid to employees        (100,000)

utilities                                           (35,000)

insurance policy                           (63,000)

cash used in operating activities (28,000)

<u>operating activities: year 2</u>

collected from client                     200,000

salaries paid to employees           (110,000)

utilities                                             (55,000)

cash generated in operating activities:    35,000

receivable:

billed - collected

year 1 receivables 193,000 - 170,000 = 23,000

year 2 receivables 240,000 - 200,000 = 40,000

<u>Income Statement year 1</u>

fees revenues 193,000

salaries           (100,000)

utilities            (40,000) (incurred cost)

insurance        (21,000)  (63,000 for three years, the value of 1 year is 21,000)

net income          32,000

<u></u>

<u>Income Statement year 2</u>

fees revenues 240,000

salaries           (110,000)

utilities            (50,000) (incurred cost)

insurance        (21,000)  (63,000 for three years, the value of 1 year is 21,000)

net income      59,000

5 0
2 years ago
Kristen Lu purchased a used automobile for $16,750 at the beginning of last year and incurred the following operating costs:
Molodets [167]

Answer:

The average operating cost is $0.46 per mile

In deciding whether to to her use her own car or rent a car the costs are analysed below:

Variable operating cost is a relevant cost

Depreciation is not relevant as it is already cost and also it is sunk cost

insurance is not relevant as well

automobile tax and license is not relevant as it would be paid regardless of the option chosen

Explanation:

The average cost comprises of the variable operating cost per mile as well as the fixed operating cost per mile

variable operating cost per mile is $0.06

fixed cost operating cost=fixed costs/total miles driven=($3,350+$1,700+$900+$450)/16000=$6400 /16000=$0.40

average cost per mile=$0.06+$0.40=$0.46

4 0
3 years ago
Which type of lender is most likely to charge the highest interest rate?
jenyasd209 [6]

Answer:

<u>B</u>

Explanation:

Unlike the other options, <u>payday lenders</u> are not official lenders operating under federal laws. This enables them to charge high interest rates as they wish.

4 0
2 years ago
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