If Wal-Mart and Target Were to Merge,this Would Be an Example

question 30

Multiple Choice

If Wal-Mart and Target were to merge,this would be an example of a ________ merger.

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

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Definitions:

Market Model

A theoretical construct that describes the functioning of a market, including the roles of buyers and sellers and the determination of prices.

Pure Monopoly

A market structure in which a single seller controls all production of a good or service with no close substitutes, leading to high barriers to entry for other firms.

Imperfect Competition

A market structure in which firms have some control over the price of their products, due to factors like product differentiation, fewer sellers, or barriers to entry.

Standardized Products

Goods or services that have uniform characteristics and quality, regardless of the producer or provider.