Vertical integration of a monopoly and a perfectly competitive firm does not yield greater economic profit.

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Vertical integration occurs when a company expands its business by acquiring firms at different stages of production. When a monopoly (a single seller controlling the market) integrates with a perfectly competitive firm (a firm in a market with many sellers and buyers), the integration may not yield greater economic profit. This is because the monopoly already has control over the market, and the added firm may not add much value or competitive advantage. In fact, it may even lower the monopoly's profits by increasing costs or decreasing efficiency. Therefore, vertical integration of a monopoly and a perfectly competitive firm does not necessarily lead to greater economic profit.

Vertical Integration of a Monopoly and a Perfectly Competitive Firm