If There Are No Vertical, Horizontal, Product Extension, or Market

question 57

Multiple Choice

If there are no vertical, horizontal, product extension, or market extension links between firms, the FTC defines the merger or acquisition activity between firms as a ________ merger.

• A) conglomerate
• B) vertical
• C) horizontal
• D) product extension

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Definitions:

Indifference Curve

A graph showing combinations of two goods that give a consumer equal satisfaction and utility.

Efficient Allocation

The optimal distribution of resources and goods to maximize the net benefit or welfare within an economy.

Allocation Efficient

A distribution of resources in which it is impossible to make any one individual better off without making at least one individual worse off.

Mutually Beneficial

A situation or agreement that provides advantages to all parties involved, ensuring that each gains from the interaction.