How Does Horizontal Integration Within an Industry Affect the Surviving

question 42

Multiple Choice

How does horizontal integration within an industry affect the surviving firms?

• A) By increasing the threat the surviving firms will face from new entrants
• B) By strengthening the rivalry among existing firms
• C) By requiring the surviving firms to shift their focus from non-price to price competition
• D) By strengthening the bargaining power of the surviving firms vis-à-vis suppliers and buyers