Eco 365 Week 4 DQ's
ECO 365 WEEK 4 DQ’s
DQ1: Due Wednesday, March 21st
In 2007 the Federal Government approved the merger between Sirius and XM satellite radio companies. The approval process was very lengthy and extremely costly. Millions of dollars were spent lobbying for and against the merger. Based on your reading for this week, answer the following questions:
· Initially the government issued Sirius and XM a license to operate provided the two firms would never merge. What is the rationale for the government requiring the firms to obtain a license to operate a satellite based radio network. Do you think the government’s decision to allow the merger was based on a judgment of performance or a judgment of structure? Please explain fully.