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:

Crowdsourcing

The practice of obtaining information or input into a task or project by enlisting the services of a large number of people, either paid or unpaid, typically via the internet.

Contracting

The act of establishing formal agreements between two or more parties, typically involving the exchange of goods, services, or commitments.

Outside Experts

Specialists or professionals hired from outside an organization to provide insight, advice, or solutions.

Meta-analysis

is a statistical technique that synthesizes the results of multiple studies to yield a quantitative overview of the effects observed in a specific domain of research.