Suppose that Verizon and Sprint were to merge. Ignoring potential antitrust problems, this merger would be classified as a:
A) horizontal merger.
B) vertical merger.
C) conglomerate merger.
D) monopolistic merger.

Question

Quizplus · Accepted Answer

A horizontal merger occurs when two companies operating in the same industry or market segment, offering similar products or services, combine. Since Verizon and Sprint are both telecommunications companies providing similar services, their merger would be considered a horizontal merger.

Suppose That Verizon and Sprint Were to Merge