Discussion
'A film studio owing a cinema hall chain' and 'a leading national newspaper buying out another national newspaper' are examples of :
Answer: C
They are vertical and horizontal concentration of ownership respectively.
Vertical concentration (integration) brings different stages of the same production chain under one owner. A film studio owning a chain of cinema halls controls both production and exhibition, which is vertical. Horizontal concentration brings together firms at the same stage. A national newspaper buying another national newspaper combines two competitors in the same market, which is horizontal. (The paper prints 'owing' for owning.)
Calling both examples vertical, or both horizontal, misses the difference between them, and the last option reverses the order of the two.
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