If two competing companies merged to increase market power,what type of merger would result?
A)acquisition
B)horizontal
C)conglomerate
D)vertical

Question

Quizplus · Accepted Answer

A horizontal merger occurs when two companies that offer similar products or services come together to increase their market power. This type of merger is often seen as a way to increase efficiency and reduce competition. In a horizontal merger between two competing companies, there can be significant synergies in terms of cost savings, economies of scale, and increased bargaining power with suppliers and customers. Therefore, a horizontal merger would be the best choice for two competing companies that want to merge to increase market power.

If Two Competing Companies Merged to Increase Market Power,what Type