Horizontal Merger in Same Industry

Steps:

• Identify the industry: Both Firm X and Firm Y supply bricks, making them competitors in the same market.
• Recall merger types: Horizontal involves firms at the same stage of production; vertical involves different stages; conglomerate involves unrelated industries.
• Compare to options: Since both are brick suppliers, this matches horizontal integration.
• Confirm: No supply chain or unrelated business elements present.

Why D is correct:

• Horizontal merger occurs between direct competitors in the same industry, as defined in antitrust economics, to reduce competition or increase market share.

Why the others are wrong:

• A: Backward vertical merger integrates with a supplier, not another producer at the same level.
• B: Conglomerate merger combines unrelated businesses, like bricks with unrelated products.
• C: Forward vertical merger integrates with a distributor or customer, not another supplier.

Final answer: D