Question

Sirius XM faces very little competition from other Satellite Radio firms and so has a near...

Sirius XM faces very little competition from other Satellite Radio firms and so has a near monopoly on this service. Why doesn’t it charge $1,000 per month for service?

A. Government regulation prevents it from doing so

B. Shareholders would not tolerate it making very high profits

C. The law of demand means that few people would pay this much and so Sirius XM would not sell many subscriptions

D. None of the above are correct

Business   Economics   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1

Even though Sirius XM is a near monopoly but like any other typical monopoly, it also faces a downward sloping demand curve.

This downward slope indicates that in order to increase the number of subscription to its services, Sirius XM has to lower its price. Charging a high price will result in very little demand and thus a lower revenue.

So, the application of law of demand compels the Sirius XM to refrain from charging a very high price.

Hence, the correct answer is the option (C).

0 0
Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
1- Ralph's Lawn Service, a monopolistic competitor, offers services that are differentiated from the services of...
1- Ralph's Lawn Service, a monopolistic competitor, offers services that are differentiated from the services of other producers in the industry, it Select one: a. faces a perfectly elastic demand curve b. has some power to control the price it charges c. faces a perfectly inelastic demand curve d. produces a product with no close substitutes e. is a price taker 2- Gillette introduced the first twin-blade shaving razor in 1971. It proved to be a extremely popular. The product...
Pandora is the Internet’s most successful subscription radio service. As of June 2013, it had over...
Pandora is the Internet’s most successful subscription radio service. As of June 2013, it had over 200 million registered users (140 million of which access the service via a mobile device) and over 70 million active listeners. Pandora now accounts for more than 70% of all Internet radio listening hours and a 7% share of total U.S. radio listening (both traditional and Internet). At Pandora, users select a genre of music based on a favorite musician, and a computer algorithm...
Answer the following questions from the information below a. What are the organization's marketing goals? b....
Answer the following questions from the information below a. What are the organization's marketing goals? b. What are the symptoms of the problem? In other words, which of the organization's marketing goals mentioned in section a., above are not being met? c. What is the organization's problem? Look at the symptoms and make a judgement about what their cause may be. Do not confuse symptoms with problems. Problems cause symptoms. d. Perform a SW/OT analysis: -What are the organization's internal...
URGENT!! 6 Multiple Choice Questions with the correct answers from the article below. Authenticity has become...
URGENT!! 6 Multiple Choice Questions with the correct answers from the article below. Authenticity has become the gold standard for leadership. But a simplistic understanding of what it means can hinder your growth and limit your impact. Consider Cynthia, a general manager in a health care organization. Her promotion into that role increased her direct reports 10-fold and expanded the range of businesses she oversaw—and she felt a little shaky about making such a big leap. A strong believer in...
Sign In INNOVATION Deep Change: How Operational Innovation Can Transform Your Company by Michael Hammer From...
Sign In INNOVATION Deep Change: How Operational Innovation Can Transform Your Company by Michael Hammer From the April 2004 Issue Save Share 8.95 In 1991, Progressive Insurance, an automobile insurer based in Mayfield Village, Ohio, had approximately $1.3 billion in sales. By 2002, that figure had grown to $9.5 billion. What fashionable strategies did Progressive employ to achieve sevenfold growth in just over a decade? Was it positioned in a high-growth industry? Hardly. Auto insurance is a mature, 100-year-old industry...
Please answer the following Case analysis questions 1-How is New Balance performing compared to its primary...
Please answer the following Case analysis questions 1-How is New Balance performing compared to its primary rivals? How will the acquisition of Reebok by Adidas impact the structure of the athletic shoe industry? Is this likely to be favorable or unfavorable for New Balance? 2- What issues does New Balance management need to address? 3-What recommendations would you make to New Balance Management? What does New Balance need to do to continue to be successful? Should management continue to invest...
Asia’s e-commerce landscape has been booming in recent years. The swift adoption of smartphones and greater...
Asia’s e-commerce landscape has been booming in recent years. The swift adoption of smartphones and greater access to the internet has allowed consumers in the region to be a major force in the global digital economy. The expansion looks set to continue at a rapid pace. According to a November 2018 report by Fitch Solutions, e-commerce sales in the region are forecast to increase by 14.2% this year, with an estimated average annual increase of 14% over the medium term...
Please read the article and answear about questions. Determining the Value of the Business After you...
Please read the article and answear about questions. Determining the Value of the Business After you have completed a thorough and exacting investigation, you need to analyze all the infor- mation you have gathered. This is the time to consult with your business, financial, and legal advis- ers to arrive at an estimate of the value of the business. Outside advisers are impartial and are more likely to see the bad things about the business than are you. You should...
Discuss ethical issues that can be identified in this case and the mode of managing ethics...
Discuss ethical issues that can be identified in this case and the mode of managing ethics Enron finds itself in this case. How would you describe the ethical culture and levels of trust at Enron? Provide reasons for your assessment. THE FALL OF ENRON: A STAKEHOLDER FAILURE Once upon a time, there was a gleaming headquarters office tower in Houston, with a giant tilted "£"' in front, slowly revolving in the Texas sun. The Enron Corporation, which once ranked among...
What role could the governance of ethics have played if it had been in existence in...
What role could the governance of ethics have played if it had been in existence in the organization? Assess the leadership of Enron from an ethical perspective. THE FALL OF ENRON: A STAKEHOLDER FAILURE Once upon a time, there was a gleaming headquarters office tower in Houston, with a giant tilted "£"' in front, slowly revolving in the Texas sun. The Enron Corporation, which once ranked among the top Fortune 500 companies, collapsed in 2001 under a mountain of debt...
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT