Which of the following is true of horizontal mergers?
A) They do not create an increase in market share.
B) They result in an increase in concentration of the relevant market.
C) The merging firms serve different markets.
D) They are mergers between firms in unrelated businesses.

Question

Quizplus · Accepted Answer

Horizontal mergers involve the consolidation of firms that operate in the same industry or market. As a result, they lead to an increase in the concentration of the relevant market as the merged entity gains a larger market share. This can pose potential antitrust concerns, as it may reduce competition and harm consumer welfare.

Which of the Following Is True of Horizontal Mergers