A merger in which firms at various stages in a production process combine is a ?
Correct answer: B. vertical merger
- A. production merger
- B. vertical merger
- C. conglomerate merger.
- D. horizontal merger
Explanation
A vertical merger joins firms operating at different stages of the same supply chain, such as a manufacturer combining with a distributor or supplier. A horizontal merger instead combines firms at the same production stage.
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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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