What Is a Possible Advantage of a Horizontal Merger for the Economy

question 20

Multiple Choice

What is a possible advantage of a horizontal merger for the economy?

• 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:

Sample

A subset of individuals or items selected from a larger population used to conduct research or statistical analysis.

Population

The entire group of individuals or items of interest from which samples may be drawn for statistical analysis.

Quantitative

Refers to the measurement of something in terms of quantity or amount.

Categorical

Pertaining to data that can be divided into specific groups or categories that are mutually exclusive.