When does horizontal integration occur?

A. When a firm acquires or merges with a major competitor

B. When a firm acquires or merges with a an unrelated business

C. When a firm acquires or merges with a distributor

D. When a firm acquires or merges with a supplier firm

Answer: Option A

Solution(By Examveda Team)

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.