Answer the Question on the Basis of the Following Table $\begin{array}{c}&&\text { Market Share of Firms in Industry }\end{array}$

question 8

Multiple Choice

Answer the question on the basis of the following table showing market shares of firms in hypothetical industries.Assume these are distinct industries with no buyer-seller relationships or competition among them. $\begin{array}{c}&&\text { Market Share of Firms in Industry }\end{array}$
$\begin{array}{c}\begin{array}{lll}\\Industry\\Alpha\\Beta\\Cappa\\Delta\\\end{array}\begin{array}{lll}\\1&2&3&4&5&6\\30&30&20&20&--&--\\80&10&5&3&1&1\\25&25&25&25&--&--\\20&20&20&20&10&10\end{array}\end{array}$ Refer to the table.A merger between Firm 2 and Firm 3 in Alpha would be a:

• A) vertical merger.
• B) horizontal merger.
• C) diagonal merger.
• D) conglomerate merger.

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Definitions:

Service

An intangible commodity that involves providing labor, support, or a facility for a fee, where the benefit is realized without the need to own a physical product.

Middleman

An intermediary or agent between producers and consumers who facilitates transactions or the distribution of products.

End-User Markets

Markets consisting of individuals or organizations that are the final consumers of products and services, using them for their own use.

Wholesaler

A person or company that sells goods in large quantities at low prices to retailers, rather than selling them directly to consumers.