Which type of merger results in decreased competition within the same industry?
A) conglomerate merger
B) vertical merger
C) horizontal merger
D) joint venture

Question

Quizplus · Accepted Answer

A horizontal merger occurs when two companies that are direct competitors within the same industry combine. This type of merger results in decreased competition because it reduces the number of companies competing in the same marketplace. The remaining companies may be able to increase prices or reduce output, leading to higher profits but potential harm to consumers.

Which Type of Merger Results in Decreased Competition Within the Same