Wizbang Computers,Inc.,a major producer of personal computers,is considering a merger with MBI,a leading producer of microprocessors and other computer chips.Wizbang believes such a merger would give them a guaranteed source of needed components,and would enable them to have better control over quality.If this merger occurs,it would be an example of a horizontal merger.

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This merger would actually be an example of a vertical merger, as it would involve companies in the same supply chain but at different stages (Wizbang as a computer producer and MBI as a microprocessor/chip producer). A horizontal merger would involve companies in the same industry and at the same stage (e.g. two computer producers merging).