Answered

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How did horizontal integration limit competition?

A. Fewer independently owned companies existed to compete.
B. Companies agreed not to compete, so they all made more money.
C. More small companies tried to supply raw materials to large companies.
D. Suppliers could not produce enough to serve horizontally integrated companies.

Sagot :

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Final answer:

Horizontal integration reduces competition by consolidating market power among a few firms.


Explanation:

Horizontal integration limited competition by reducing the number of independently owned companies, leading to less competition. When companies agree not to compete, they can collectively increase their profits by dictating terms to suppliers and customers. This can result in market power that restricts competition and can lead to oligopolistic structures in various industries.


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