This topic contains a solution. Click here to go to the answer

Author Question: What is the difference between a horizontal and vertical merger? What will be an ideal ... (Read 54 times)

arivle123

  • Hero Member
  • *****
  • Posts: 569
What is the difference between a horizontal and vertical merger?
 
  What will be an ideal response?

Question 2

Lower level courts are less likely to be effective than higher-level courts.
 
  Indicate whether the statement is true or false



Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
Marked as best answer by a Subject Expert

essyface1

  • Sr. Member
  • ****
  • Posts: 347
Answer to Question 1

In a horizontal merger, the acquisition of a competitor could increase market concentration and increase the likelihood of collusion. The elimination of head-to-head competition between two leading firms may result in unilateral anticompetitive effects. A recent example of this involved Staples, Inc., a superstore retailer of office supplies. Staples attempted to acquire Office Depot, another giant retailer in the same industry and clearly a competitor. In many areas of the country, the merger would have reduced the number of superstore competitors, often leaving Staples as the only superstore in the area. The F.T.C. subsequently blocked the merger and avoiding potentially harmful effects such as increased costs to profits, though Staples would have benefited highly from the merger. Vertical mergers involve firms in a buyer-seller relationship. Put another way, a vertical merger is a merger between two firms, one of which is a supplier or distributor for the other and this can harm competition by making it difficult for competitors to gain access to an important component product or to an important channel of distribution. This is sometimes referred to as a bottleneck.

Answer to Question 2

True




arivle123

  • Member
  • Posts: 569
Reply 2 on: Aug 3, 2018
Wow, this really help


rachel

  • Member
  • Posts: 323
Reply 3 on: Yesterday
YES! Correct, THANKS for helping me on my review

 

Did you know?

More than 2,500 barbiturates have been synthesized. At the height of their popularity, about 50 were marketed for human use.

Did you know?

The tallest man ever known was Robert Wadlow, an American, who reached the height of 8 feet 11 inches. He died at age 26 years from an infection caused by the immense weight of his body (491 pounds) and the stress on his leg bones and muscles.

Did you know?

Astigmatism is the most common vision problem. It may accompany nearsightedness or farsightedness. It is usually caused by an irregularly shaped cornea, but sometimes it is the result of an irregularly shaped lens. Either type can be corrected by eyeglasses, contact lenses, or refractive surgery.

Did you know?

The Centers for Disease Control and Prevention (CDC) was originally known as the Communicable Disease Center, which was formed to fight malaria. It was originally headquartered in Atlanta, Georgia, since the Southern states faced the worst threat from malaria.

Did you know?

Famous people who died from poisoning or drug overdose include, Adolf Hitler, Socrates, Juan Ponce de Leon, Marilyn Monroe, Judy Garland, and John Belushi.

For a complete list of videos, visit our video library