The concentration ratio for an industry can be increased almost overnight by
A) collusion among the leading four firms
B) the creation of a cartel
C) a conglomerate merger
D) a vertical merger
E) a horizontal merger

Question

Quizplus · Accepted Answer

A horizontal merger increases the concentration ratio by combining firms within the same industry, thus reducing the number of competitors and increasing market share for the merged entity.

The Concentration Ratio for an Industry Can Be Increased Almost