1. Which of the following will increase the 4-firm A. a horizontal merger betwee

Question

1. Which of the following will increase the 4-firm A. a horizontal merger between two of the ind largest firms. between one of an industry's largest firms and one of the many input suppliers in the a particular industy B. a vertical merger resource market. C. a conglomerate merger involving one of the industry's major firms. 2. A chain, and a brokerage house-is called: A. an integrated merger B. a conglomerate merger. C. a vertical merger D. a horizontal merger fast-f merger of several firms operating in different in dustries-for example, a trucking c ompany, a 3. Conspiracies to fix prices are: A. illegal under the Clayton Act. B. illegal under the Celler-Kefauver Act. C. per se violations of the antitrust laws. Answer the next question on the basis of the following table showing market shares of f industries. Assume these are distinct industries with no buyer-seller relationships or con Market share of firms in Industry Industry 1 2 3 4 5 6 Alpha 30 30 20 20 80 10 5 3 1 1 Beta Cappa 25 25 25 25- Delta 20 20 20 20 10 10

Explanation / Answer

1. Option A

Explanation: In horizontal mergers, firms in the same industry producing substitute products merge together and form a single entity. Horizontal merger reduces competition in the market and increases four-firm concentration ratio as the total market captured by the largest four firms increase after the merger.

Related Questions

Navigate

• Browse (All)
• Browse 1
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.