Which of the following is an example of a merger undertaken in order to achieve monopoly gains?
A) A car manufacturer acquires a car parts supplier.
B) A breakfast cereal producer acquires another breakfast cereal producer and the combined firm is able to negotiate a reduced cost for the grain used in its cereal.
C) A telecommunications firm acquires another telecommunications firm and the combined firm serves a large percentage of the market.
D) An accounting firm acquires another accounting firm and the combined firm is able to eliminate duplication among administrative positions.
E) A video game development firm acquires another video game development firm that specializes in designing games for a new gaming system.
Correct Answer:
Verified
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