Answer:
A) Is a merger between firms in the same industry
Explanation:
A horizontal merger occurs when companies that offer a similar service of product join in order to gain a comparative advantage.
For example, if two pharmaceutical companies or two restaurant chains merge, we have an example of an horizontal merger.
Horizontal mergers can benefit companies in mainly two ways:
- If the companies sell similar products, they can increase the market share.
- If the companies sell complementary products, they can increase the range of products that they offer.
