Question 1
Which of the following results of mergers is NOT likely to be in the interests of customers?
◦ Growth
◦ Economies of scale
◦ Increased market power
◦ Diversification
Question 2
Tapered vertical integration reduces the risks of vertical integration because
◦ tapered mergers are more risky.
◦ tapered mergers have higher capital requirements.
◦ tapered mergers are carried out more slowly than traditional mergers.
◦ it allows both internal and external production of materials.