What is the term for a merger where companies operating at different phases of the production chain unite?

Applied Microeconomics MCQs for PPSC, FPSC, NTS, and Pakistan government job tests. Select an option below, then read the explanation.

PPSCFPSCNTSPakistan govt jobs
Subject
Applied Microeconomicseconomics-mcqs › applied-microeconomics
Published
2 Jun 2019
Last updated
28 May 2026

Browse all Applied Microeconomics MCQs

Choose the correct answer

Explanation

A vertical merger occurs when businesses at distinct levels of the production or supply chain join together, unlike horizontal mergers which involve competitors at the same stage, or conglomerate mergers which combine unrelated businesses.

More in Economics Mcqs

PakQuizHub — free MCQs and past papers for Pakistan government job tests. Content is for educational practice only.