Vertical mergers create an increase in market share because the merging firms serve different markets.

Question

Quizplus · Accepted Answer

Vertical mergers occur when firms involved in different stages of a supply chain merge. Such mergers may not necessarily increase market share as the merging firms continue to serve the same markets they served prior to the merger. However, vertical mergers can lead to efficiencies and cost savings in the supply chain.

Vertical Mergers Create an Increase in Market Share Because the Merging