One reason a firm would consider a _____ merger would be to increase size and market power in its industry.
A)hostile
B)conglomerate
C)vertical
D)horizontal

Question

Quizplus · Accepted Answer

A horizontal merger occurs when two companies in the same industry and with similar product lines merge together. The purpose of a horizontal merger is to increase market share and decrease competition. This would allow the new merged firm to have more bargaining power, economies of scale, and potentially higher profits.

One Reason a Firm Would Consider a _____ Merger Would