It is possible for a horizontal merger to increase the total surplus in the market.

Question

Quizplus · Accepted Answer

A horizontal merger can lead to cost savings, increased efficiency, and improved products, which can result in lower prices for consumers and higher profits for companies. This can increase the total surplus in the market. However, it is important to consider potential negative effects such as decreased competition and market power.

It Is Possible for a Horizontal Merger to Increase the Total