Principles of Microeconomics / Unit 10 MIC 0902 short lesson, about 20 seconds
Mergers and Acquisitions
Captions available
The idea
A merger joins two firms; an acquisition is one buying another. Horizontal mergers join rivals, vertical ones join stages of a supply chain, conglomerate ones join unrelated businesses. Large mergers are notified in advance.
In practice
Regulators allow most, block a few, and some on condition a plant is sold.
Where people slip
A merger can raise efficiency and market power at once; regulators weigh both.
Your place on the trail
Every lesson rests on earlier ones and opens later ones. Tap any to jump.
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