Which of the Following Is Correct

question 136

Multiple Choice

Which of the following is correct?

• A) Vertical mergers are more likely to be acceptable under antitrust laws than are horizontal mergers.
• B) A vertical merger entails the merging of two or more competing firms.
• C) Horizontal mergers are more likely to be acceptable under antitrust laws than are vertical mergers.
• D) Conglomerate mergers occur when two or more firms at various stages in a good's production are combined.

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Definitions:

Tax

A compulsory financial charge or other levy imposed by a government on individuals or businesses to fund various public expenditures.

Binding Price Floor

A legal minimum price for a good or service that is set above the equilibrium price, resulting in surpluses.

Binding Price Ceiling

A government-imposed limit on how high a price can be charged for a product, set below the market equilibrium price, leading to shortages.

Decreases

A reduction in size, quantity, or degree; the opposite of increases.