In the 1920s General Motors Gobbled Up More Than 100

question 47

Multiple Choice

In the 1920s General Motors gobbled up more than 100 independent carmakers.This would be an example of a ________ merger.

• A)vertical
• B)horizontal
• C)conglomerate

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Definitions:

Product Variety

The assortment of different goods or services offered by a firm or market to cater to diverse consumer preferences.

Monopolistically Competitive

A marketplace configuration in which a wide variety of firms supply products that are analogous but not identical, thereby granting them a modicum of market influence.

Elastic

A characteristic of goods where their demand or supply changes significantly when the price changes.

Monopolistic Competitor

A market structure where many firms offer products or services that are similar but not perfect substitutes, allowing for some degree of market power.