The joining of firms that are producing or selling a similar product is known as
A) a conglomerate merger.
B) a horizontal merger.
C) a vertical merger.
D) economies to scale.

Question

Quizplus · Accepted Answer

A horizontal merger occurs when firms producing or selling a similar product merge together, such as two companies that produce soft drinks or two companies that provide internet services. This type of merger can result in increased market share, bargaining power, and economies of scale.

The Joining of Firms That Are Producing or Selling a Similar