QUESTION IMAGE
Question
pregunta 37 (2 puntos)
combining companies that are involved in different steps of the manufacturing process is called a ____.
a horizontal merger
b vertical merger
c dividend
d limited merger
pregunta 38 (2 puntos)
when a larger business sets its price very low, to drive smaller companies out of business, it is called ____.
a deregulation
b predatory pricing
c competitive pricing
d price fixing
Brief Explanations
- For Pregunta 37: A vertical merger combines companies at different stages of the same production process, which matches the description of involving different steps of manufacturing.
- For Pregunta 38: Predatory pricing refers to a dominant firm setting low prices to eliminate competitors, aligning with the scenario of a larger business driving smaller ones out via low pricing.
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b. vertical merger
b. predatory pricing