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Identify the Type of Merger in Each of the Following

question 132

Essay

Identify the type of merger in each of the following situations and indicate how the post-merger concentration ratio for the industry is affected.
a.A steel company merges with a coal and iron ore mining company.
b.Staples, a retailer of office supplies, acquires Office Depot, another retailer of office supplies.
c.An oil company merges with pipeline, shipping, and railroad companies as well as refineries and gas stations.


Definitions:

Total Cost

The complete cost of production which includes both fixed and variable costs.

Profit Maximizes

The process or strategy of adjusting production and sales to achieve the highest possible profit.

Same Price

Indicates a situation where an item or service is offered for sale at an identical monetary value in different contexts or locations.

Monopolist

A single seller in a market who has significant control over the price and supply of a unique product or service.

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