Horizontal mergers often lead to industry fragmentation.

Name: Horizontal mergers often lead to industry fragmentation.
Brand: Quizplus
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Question

Quizplus · Accepted Answer

Horizontal mergers typically result in consolidation rather than fragmentation of the industry, as they involve the merging of firms in the same industry or market to create a larger entity with increased market power and efficiency. Vertical mergers, on the other hand, can lead to fragmentation by separating different stages of production or distribution among multiple companies.

Horizontal Mergers Often Lead to Industry Fragmentation