Thursday, 17 March 2016

Cima C04 Exam Question No 47

Question No 47:

A government may prevent horizontal mergers in an industry because?

A. By controlling sources of supply, the merged firms can prevent the entry of new firms into the industry
B. There will be a lack of synergy between the merging companies
C. The merged firms will be unable to reduce costs
D. Consumers may suffer if the merged firm achieve market dominance

Answer: D

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