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:

Exterminate

To completely destroy or eliminate a group, species, or population, often used in contexts of war, genocide, or pest control.

New World

A term historically used by Europeans to refer to the Americas, discovered by Europeans in the late 15th and early 16th centuries.

Intermarried

Refers to the act of marrying someone from a different ethnic, religious, or racial group, often highlighting instances of cultural or societal integration and exchange.

Mixed-race Children

Children born to parents of different racial backgrounds, who may inherit aspects of both parents' cultural, racial, or ethnic identities.