Q51
When does horizontal integration occur?
A.
When a firm acquires or merges with a major competitor
AnswerB.
When a firm acquires or merges with a an unrelated business
C.
When a firm acquires or merges with a distributor
D.
When a firm acquires or merges with a supplier firm
Answer: Option A
Solution
Answer: Option A
Solution:
Horizontal integration occurs when When a firm acquires or merges with a major competitor. Horizontal integration is the process of a company increasing production of goods or services at the same part of the supply chain. A company may do this via internal expansion, acquisition or merger. The process can lead to monopoly if a company captures the vast majority of the market for that product or service.