Asked by Donna Simko on Apr 30, 2024

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​Antitrust risks from vertical integration are usually ______than those from horizontal integration

A) ​Higher
B) Lower
C) About the same as
D) ​None of the above

Antitrust Risks

The risks associated with violating laws designed to promote competition and prevent monopolies.

Vertical Integration

The combination of two or more stages of production or distribution managed by a single company to increase control and reduce costs along the supply chain.

Horizontal Integration

A business growth strategy through acquiring or merging with competitors in the same industry at the same stage of production.

  • Comprehend the antitrust risks and enforcement related to vertical and horizontal relationships.
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ZK
Zybrea KnightMay 03, 2024
Final Answer :
B
Explanation :
Antitrust risks from vertical integration are usually lower than those from horizontal integration because vertical integration involves companies at different stages of production (e.g., a supplier and a manufacturer), which typically poses less threat to competition compared to horizontal integration, where companies at the same stage of production merge or acquire each other, potentially reducing competition directly.