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question 1-2
how did the horizontal integration structure lead to the development of monopolies?
by managing the stocks of other companies
by buying up the companies needed in the industrial process
by owning the stock of other companies
by buying out the competitors in a particular industry
Horizontal integration involves a company acquiring its competitors in the same industry. By buying out competitors, a firm can reduce competition and gain significant market - share, which can lead to the development of a monopoly. Managing or owning stocks may not directly lead to monopoly as buying out competitors does. Buying up companies in the industrial process is vertical integration.
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by buying out the competitors in a particular industry