All of the following are benefits of horizontal integration except:
A) Reduced risk of coming into conflict with the FTC
B) Increased product differentiation
C) Reduced industry rivalry
D) Increased bargaining power over suppliers
E) Reduced cost structure

Question

Quizplus · Accepted Answer

Horizontal integration involves merging or acquiring other firms in the same industry or market. This can lead to increased product differentiation, reduced industry rivalry, increased bargaining power over suppliers, and reduced cost structure. However, it does not necessarily reduce the risk of coming into conflict with the FTC (Federal Trade Commission) which is responsible for promoting consumer protection and preventing anti-competitive business practices. In fact, horizontal integration may raise antitrust concerns if it leads to market concentration and reduced competition.

All of the Following Are Benefits of Horizontal Integration Except