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Part $1$

What is the difference between a horizontal merger and a vertical$$ merger?

Part $2$

A horizontal merger is a merger

Part $3$

A$.$

between firms that

have market powerhave$$market$$power$,$

while a vertical merger is a merger between firms that

are price takersare$$price$$takers$.$

B$.$

that would

decreasedecrease

$$efficiency$,$ while a vertical merger is a merger that would

increaseincrease

efficiency.

C$.$

between firms in different$$ industries, while a vertical merger is a merger between firms in the same industry.

D$.$

between firms in the same$$ industry, while a vertical merger is a merger between firms at different stages of the production of a good.

E$.$

between firms of

the same sizethe$$same$$size$,$

while a vertical merger is a merger between firms of

different sizesdifferent$$sizes$.$

Part $4$

Which type of merger is more likely to increase the market power of a newly merged$$ firm?

Part $5$

$$

$$

Horizontal

Vertical

mergers are more likely to increase market power.