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28 October, 05:41

A horizontal merger

A. is a merger between firms in the same industry.

B. was illegal in the United States until the Federal Trade Commission Act was passed by Congress in 1914.

C. is a merger between firms at different stages of production of a good.

D. results in a trust (for example, the Standard Oil Company).

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Answers (1)
  1. 28 October, 06:04
    0
    A) Is a merger between firms in the same industry

    Explanation:

    A horizontal merger occurs when companies that offer a similar service of product join in order to gain a comparative advantage.

    For example, if two pharmaceutical companies or two restaurant chains merge, we have an example of an horizontal merger.

    Horizontal mergers can benefit companies in mainly two ways:

    If the companies sell similar products, they can increase the market share. If the companies sell complementary products, they can increase the range of products that they offer.
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Home » Business » A horizontal merger A. is a merger between firms in the same industry. B. was illegal in the United States until the Federal Trade Commission Act was passed by Congress in 1914. C.
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