The type(s) of merger(s) that directly increase(s) concentration in an industry is (are)
A) horizontal
B) vertical
C) conglomerate
D) both vertical and horizontal
E) both vertical and conglomerate

Question

Quizplus · Accepted Answer

Horizontal mergers directly increase industry concentration by combining two or more firms that are competitors in the same market, thereby reducing the number of entities competing in that space. Vertical and conglomerate mergers do not combine firms in the same market, so they do not directly increase market concentration in the same way.

The Type(s) of Merger(s) That Directly Increase(s) Concentration in an Industry