A good example of _________ is the merger between a steel firm and a cookware firm.
A) a horizontal merger
B) a vertical merger
C) a conglomerate merger
D) either a horizontal or conglomerate merger, depending on whether the oligopoly is balanced or unbalanced
E) either a horizontal or conglomerate merger, depending on the market shares of the two firms

Question

Quizplus · Accepted Answer

A vertical merger occurs when two companies that operate at different levels within the same industry's supply chain combine operations. In this case, a steel firm (a supplier of raw materials) merging with a cookware firm (a manufacturer that uses those materials) exemplifies a vertical merger, as they are at different stages of production.

A Good Example of _________ Is the Merger Between a Steel