A Possible Advantage of a Horizontal Merger for the Economy

question 158

Multiple Choice

A possible advantage of a horizontal merger for the economy is that

• A)the merging firms could avoid losses.
• B)the merged firm might reap economies of scale which could translate into lower prices.
• C)the degree of competition in the industry will be intensified.
• D)the government stands to collect more corporate income tax revenue.

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Definitions:

Steam Power

A form of energy generated by heating water to create steam, historically significant for its use in the Industrial Revolution.

Manufacturing Environment

The setting or conditions in which the production of goods is carried out, often involving factories, machinery, and labor.

High-Pressure Steam Engine

An advancement in steam engine technology that allowed engines to operate at higher pressures, significantly improving efficiency and power output, crucial to the Industrial Revolution.

Second Bank

The Second Bank of the United States, established in 1816 and operational until 1836, was a central bank chartered by the U.S. government to manage the country's finances.