Economics 0455 · IGCSE · Market structure

Market structure — practice question

In 2007, a large industrial mining company tried to take over another industrial mining company. This attempt was unsuccessful. In 2010, the same mining company put forward an offer to acquire a company that sells potash, which is used to improve agricultural soils. How can the mining company’s efforts to acquire these other companies be described?

  • A2007: diversification; 2010: horizontal integration
  • B2007: horizontal integration; 2010: diversification
  • C2007: specialisation; 2010: vertical integration
  • D2007: vertical integration; 2010: specialisation

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