If two steel firms merge, the merger is described as
A) a horizontal merger
B) a vertical merger
C) a conglomerate merger
D) either a vertical or conglomerate merger depending on whether the oligopoly is balanced or unbalanced
E) either a vertical or conglomerate merger depending on the number of steel firms in the steel industry

Question

Quizplus · Accepted Answer

A horizontal merger occurs when two companies operating in the same industry, such as steel, combine. This type of merger is aimed at increasing market share and reducing competition within the same industry sector.

If Two Steel Firms Merge, the Merger Is Described as