A Possible Advantage of a Horizontal Merger for the Economy

question 158

Multiple Choice

A possible advantage of a horizontal merger for the economy is that

• A)the merging firms could avoid losses.
• B)the merged firm might reap economies of scale which could translate into lower prices.
• C)the degree of competition in the industry will be intensified.
• D)the government stands to collect more corporate income tax revenue.

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Definitions:

Verbally

Through spoken words; orally.

Caution Signals

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Agreement Signals

Non-verbal or verbal cues that indicate consensus or approval in a discussion or negotiation.

Nonverbal Communication

entails the transmission of messages or signals through a non-linguistic means, such as facial expressions, body language, and gestures.