A horizontal merger is a merger of?
Correct answer: D. firms producing the same product
- A. firms producing unrelated products
- B. firms producing complementary products
- C. firms at various stages in a production process.
- D. firms producing the same product
Explanation
A horizontal merger combines firms operating at the same stage and producing the same or closely similar products, such as two competing automobile manufacturers. Firms at different production stages would form a vertical merger.
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