A horizontal merger between two firms occurs when:
a. the products of the merging firms were not related in any manner before the merger.
b. one firm is a producer of products, and the other firm is a producer of services.
c. one firm is a domestic firm, and the other is a foreign company.
d. the firms stood in a buyer-seller relationship before the merger.
e. the merger partners were competitors.
e
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Indicate whether the statement is true or false
One reason economists distinguish between micro and macro is supply and demand are:
A. unrelated to one another. B. more interdependent in individual markets (micro). C. more interdependent in the aggregate (macro). D. never interdependent.
If a Cournot duopolist announced that it will double its output,
A) it becomes the leader. B) the other firm does not view the announcement as credible. C) the other firm will shut down. D) the other firm will double output also.
A purely competitive firm currently producing 20 units of output earns marginal revenues of $12 from each extra unit of output it sells. If it sells 30 units, then its total revenues would be:
A. $120 B. $240 C. $360 D. Indeterminate based on the given information