When Two Companies in the Same Industry Agree to Become

question 327

Multiple Choice

When two companies in the same industry agree to become one firm, the result is called a

• A) vertical merger.
• B) joint venture.
• C) monopoly.
• D) horizontal merger.

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Definitions:

Club Good

A Club Good is a type of good that is excludable but not rival in consumption, meaning access can be limited to paying members, but one member's use does not diminish availability to others.

Occupational Safety

The discipline focused on ensuring safe and healthy working conditions for employees by enforcing standards and providing training to reduce workplace accidents and illnesses.

Hazardous Chemical

A chemical substance that poses a potential risk to health, safety, or the environment.

Willingness To Pay

The highest price a person is willing to pay for a product or service, indicative of its perceived worth to them.