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:

Serosanguineous

Pertaining to a fluid that is a mixture of serum and blood, typically seen in wounds as a type of discharge.

Watery Drainage

Fluid that is thin and clear, resembling water, which may leak from a wound, sore, or infection site.

Red

A color at the end of the visible spectrum, often associated with danger, passion, or excitement.

Pressure Ulcers

Injuries to skin and underlying tissue resulting from prolonged pressure on the skin, commonly affecting bedridden or immobile individuals.