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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 :

GinnyAnswer

Final answer:

Horizontal integration restricts competition by reducing the number of independent companies, allowing for agreements not to compete, and enabling market dominance.


Explanation:

Horizontal integration limited competition through various mechanisms. One way was by reducing the number of independently owned companies, leading to fewer competitors. Additionally, companies engaging in horizontal integration could agree not to compete, effectively limiting competition in the market. By consolidating resources and market power, horizontally integrated companies could also control prices and dominate markets, making it challenging for smaller players to enter the field.


Learn more about Horizontal integration and competition here:

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