Question

88 multiple choice
why was the merger of t-mobile and sprint in 2019 a big concern?
select two that apply.
a it would lower competition and could raise prices.
b it would raise competition and could raise the quality of cellular
service.
c it would lower competition and could lower the quality of cellular
service.
d it would raise competition and could lower prices.

Explanation:

• Option A: When two major competitors (T - Mobile and Sprint) merge, the number of competitors in the market decreases. With less competition, firms have more market power. They can potentially raise prices as consumers have fewer alternatives.
• Option C: A reduction in competition can also lead to a lower quality of service. When there is less pressure from competitors to innovate and improve service (since there are fewer rivals to steal customers), the merged entity may not have as strong an incentive to maintain or enhance the quality of cellular service.

Answer:

A. It would lower competition and could raise prices.
C. It would lower competition and could lower the quality of cellular service.