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:

Average Abundance

The typical concentration of an element or compound within a certain environment or mixture.

Average Abundance

The typical concentration or amount of a particular element or species within a defined space or ecosystem.

Nonsilicate Mineral

Minerals that do not contain silicon-oxygen tetrahedra, including various groups like carbonates, sulfates, and oxides.

Plagioclase Feldspar

A group of common rock-forming silicate minerals that are significant components of many igneous rocks.