Horizontal mergers would most likely cause the
A) merged firm to engage in cartel behavior
B) market power of the merged firm to be considerably less than the market power held by both firms before the merger
C) stock value of the two firms to increase
D) formerly perfectly competitive firms to become oligopolistic
E) industry's concentration ratio to increase

Question

Quizplus · Accepted Answer

Horizontal mergers reduce the number of firms in an industry, increasing the concentration ratio and potentially leading to greater market power for the merged entity.

Horizontal Mergers Would Most Likely Cause the