A horizontal merger
A) occurs when two firms that produce similar products combine their operations.
B) will never be opposed by the U.S. government but a vertical merger will.
C) always results in a loss of efficiency in a market.
D) involves two firms at different stages of the production process.

Question

Quizplus · Accepted Answer

A horizontal merger involves the combination of two or more firms that operate in the same industry and produce similar products or services. This type of merger can lead to increased market share and economies of scale.

A Horizontal Merger