Subsidies Can Be Used to Internalize Positive Externalities

question 21

True/False

Subsidies can be used to internalize positive externalities.

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Definitions:

Conglomerate Merger

A combination of two or more corporations engaged in entirely different business activities, coming together to form a single corporate structure.

Integrated Merger

A merger between companies at different stages in the production process of a particular industry, often aimed at reducing costs or securing supplies.

Vertical Merger

A merger between two or more companies operating at different stages in the production process of a good or service.

Horizontal Merger

A merger between companies that operate in the same industry, often leading to consolidation in the market.