1. When a firm acquires or merges with a major competitor
  2. When a firm acquires or merges with a an unrelated business
  3. When a firm acquires or merges with a distributor
  4. When a firm acquires or merges with a supplier firm
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1 Answers

Answer: Option 1

Horizontal integration occurs when When a firm acquires or merges with a major competitor. Horizontal integration is the process of a company increasing production of goods or services at the same part of the supply chain. A company may do this via internal expansion, acquisition or merger. The process can lead to monopoly if a company captures the vast majority of the market for that product or service.

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