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8 February, 21:35

How do conglomerates and vertical mergers differ from horizontal mergers?

They increase competition in the marketplace.

They usually produce better quality products.

They are not regulated by the government.

They do not usually lessen competition in the marketplace.

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  1. 8 February, 21:39
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    The correct option is D

    They do not usually lessen competition in the marketplace.

    Vertical and conglomerate mergers do not usually lessen competition in the market. This is because conglomerate and vertical involves merging of unrelated product firms. With horizontal mergers however, merging involves firms producing similar products thus lessening competition.
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