A horizontal merger is one in which the merging firms:
A) are about the same size.
B) produce the same good in the same industry.
C) will control greater than 50 percent of the market.
D) have never directly competed in the past.
E) will pay twice as much in taxes.

Question

Quizplus · Accepted Answer

A horizontal merger is one in which the merging firms produce the same good in the same industry. Size, market control, competition history, and tax payments are not defining characteristics of a horizontal merger.

A Horizontal Merger Is One in Which the Merging Firms