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:

High-Maintenance Behaviors

Behaviors exhibited by individuals who require excessive attention, support, or communication.

Task Role

A role taken on by a group member that contributes towards achieving the group's objectives and tasks, focusing on practical and functional aspects of group activity.

Clarifying

The process of making statements or concepts more understandable and precise through detailed explanations or specifications.

Encouraging

involves providing support, confidence, or hope to someone.