Horizontal integration in an industry tends to
A) increase rivalry among firms.
B) reduce rivalry among firms.
C) have little effect on rivalry among firms.
D) reduce the number of consumers buying the products.
E) none of these choices.

Question

Quizplus · Accepted Answer

Horizontal integration often results in the consolidation of firms within a particular industry, reducing the number of competitors and therefore reducing the level of rivalry among firms. This is because the merged firms are now working towards a common goal, rather than trying to outdo each other.

Horizontal Integration in an Industry Tends to