Economics 0455 · IGCSE · Market structure

Market structure — practice question

What is one key benefit of a horizontal merger when compared with a conglomerate merger?

  • AIt causes more motivation of the workforce.
  • BIt gains financial economies of scale with cheaper borrowing from banks.
  • CIt leads to a diversification making the firm less vulnerable.
  • DIt reduces competition and increases the merged firm’s market share.

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