Assume firm X is one of the three largest firms in an oligopolistic industry. Firm X is currently considering a vertical merger with another firm that is the sole supplier of an input used by all of the firms that compete with firm X.
If the merger goes through, firm X would be able to operate much like: A) a perfectly competitive firm.
B) a monopolistically competitive firm.
C) an oligopolist.
D) a monopolist.
ANSWER
D
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