A conglomerate merger is a merger of ?
Correct answer: D. firms producing unrelated products.
- A. firms producing the same product
- B. firms at various stages in production process.
- C. firm producing complementary products
- D. firms producing unrelated products.
Explanation
A conglomerate merger combines firms from unrelated industries or product markets. Firms making the same product are involved in a horizontal merger, while firms at different production stages form a vertical merger.
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Individual consumers, firms and markets are examined through demand and supply, elasticity, consumer choice, production, costs, revenue and the determination of prices and output. The topic also covers market structures such as perfect competition, monopoly and oligopoly, plus market failure, externalities and the distinction between microeconomic decisions and economy-wide outcomes.
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