Vertical mergers occur between firms that have buyer and seller relationships, such as a manufacturer merging with a supplier or a distributor. This type of merger can potentially harm competition by limiting the choices available to buyers, but they are not always prohibited by antitrust laws.

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Vertical Mergers

Question 45

Multiple Choice

Vertical mergers:

A) occur between firms that have a competitor relationship.
B) occur between firms that have buyer and seller relationships.
C) are not covered by the Clayton Act.
D) are always protected by the federal government.

Correct Answer: