The merger of two clothing firms would be a ____ merger?
Correct answer: A. horizontal
- A. horizontal
- B. vertical
- C. homogeneous
- D. conglomerate
Explanation
A merger between two clothing firms combines businesses operating at the same stage and in the same industry, making it horizontal. A vertical merger instead joins firms at different stages of production, such as a producer and a retailer.
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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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