The main reason for a vertical merger is _________________.

Question

Quizplus · Accepted Answer

The main reason for a vertical merger is to gain control over input prices. Vertical integration allows a company to own and control the entire supply chain, from the raw materials to the finished product, thereby reducing dependency on external suppliers and avoiding price fluctuations. The other options, avoidance of fixed costs and elimination of costs of searching for input prices, may be potential benefits of a vertical merger but are not the main reason for it.

The Main Reason for a Vertical Merger Is _________________