Answer the question on the basis of the following table showing market shares of firms in hypothetical industries.Assume these are distinct industries with no buyer-seller relationships or competition among them. $\begin{array}{c}
&&\text { Market Share of Firms in Industry }
\end{array}$
$\begin{array}{c}
\begin{array}{lll}
\
Industry\
Alpha\
Beta\
Cappa\
Delta\
\end{array}
\begin{array}{lll}
\
1&2&3&4&5&6\
30&30&20&20&--&--\
80&10&5&3&1&1\
25&25&25&25&--&--\
20&20&20&20&10&10
\end{array}
\end{array}$ Refer to the table.A merger between Firm 2 and Firm 3 in Alpha would be a:
A) vertical merger.
B) horizontal merger.
C) diagonal merger.
D) conglomerate merger.

Question

Quizplus · Accepted Answer

A horizontal merger is a merger between firms that compete in the same industry. Since Firm 2 and Firm 3 are both in the Alpha industry, a merger between them would be a horizontal merger. A vertical merger would be a merger between firms in different stages of the same supply chain. A diagonal merger and a conglomerate merger do not have clear definitions and are not commonly used terms in economics.

Answer the Question on the Basis of the Following Table Market Share of Firms in Industry \begin{array}{c}&&\text { Market Share of Firms in Industry }\end{array}​​ Market Share of Firms in Industry ​

Answer the Question on the Basis of the Following Table $\begin{array}{c}&&\text { Market Share of Firms in Industry }\end{array}$