In a Fragmented Market, Firms Can Use an Acquisition Strategy

question 34

Multiple Choice

In a fragmented market, firms can use an acquisition strategy to

• A) avoid potential antitrust scrutiny by the Federal government.
• B) increase market power through vertical acquisitions.
• C) reduce overdiversification.
• D) increase their growth rate.

---

Definitions:

Agricultural Products

Goods derived from farming and agriculture, including food items, feed, fiber, and biofuel commodities.

Tariffs

Taxes imposed by a government on imported or occasionally exported goods, often used to protect domestic industries from foreign competition.

Agricultural Act of 2014

A comprehensive statute that governs United States federal farm programs including crop insurance, conservation programs, and nutritional assistance.

Freedom to Farm Act

U.S. legislation passed in 1996 that aimed to reduce government control over farming operations and allow farmers more freedom in their planting decisions.