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An example of a vertical combination is the merger of_________

Economics
JAMB 2019

An example of a vertical combination is the merger of_________

  • A. a spinning firm and a wearing firm
  • B. two meat retailing firms
  • C. two very large wholesale textile distributors
  • D. three secretarial employment agencies in one town
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Correct Answer: Option A
Explanation

Vertical combination is the merging together of two businesses that are at different stages of production. Merging in this way with something further on in the production process is known as Forward Integration.

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