Suppose that Verizon and Sprint were to merge.Ignoring potential antitrust problems, this merger would be classiﬁed as a:
A)horizontal merger.
B)vertical merger.
C)conglomerate merger.
D)monopolistic merger.
E)None of the above.

Question

Quizplus · Accepted Answer

Verizon and Sprint are competitors in the same industry (telecommunications) and their merger would result in a consolidation of their market power, creating a larger entity with greater market share. This falls under the definition of a horizontal merger, which occurs when companies at the same level of the supply chain merge.

Suppose That Verizon and Sprint Were to Merge