Ever since the creation of the interstate highway system, the railroads have had to compete with trucks for freight shipments. Union Pacific, the nation's largest railroad, now offers door-to-door services to clients, using their own trains and trucks. This must be the result of:
A) horizontal merger.
B) vertical merger.
C) conglomerate merger.
D) deregulation.
E) high fuel prices.

Question

Quizplus · Accepted Answer

Union Pacific offering door-to-door services using their own trains and trucks indicates a vertical merger, where the railroad has integrated with the transportation services typically provided by trucks. This allows Union Pacific to better compete with trucks for freight shipments.

Ever Since the Creation of the Interstate Highway System, the Railroads