Asked by Alondra Medina on Sep 24, 2024
Verified
Horizontal contracts often result in
A) Higher prices
B) Lower prices
C) Unchanged prices
D) None of the above
Horizontal Contracts
Agreements between firms or entities at the same level in the supply chain, often to coordinate strategies or manage joint ventures.
Prices
The sum of money needed to buy goods or services.
- Comprehend the impact of vertical and horizontal integration on profit margins and competitive landscape.
Verified Answer
OG
Oyunbat Ganbat2 days ago
Final Answer :
A
Explanation :
Horizontal contracts are agreements between competitors within a market. These contracts often lead to higher prices as the competitors agree to limit competition and increase their profits.
Learning Objectives
- Comprehend the impact of vertical and horizontal integration on profit margins and competitive landscape.