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Essay text:
Some mergers create a rigorous market, while others produce a single firm to raise prices.
In a concentrated market, only a few firms stand. But, there is a great danger as the firms may find it easier to lessen competition by merging. For example, they may agree on the prices they will charge consumers. There are many disadvantages to the community if the merger not only destroys its closest competition, but if the remaining firms in the market do not prove to be a substantial competition, there can be a great cause of concern.
There are three different types of mergers, horizontal mergers, which involve two competitors; vertical mergers, which involve firms in a buyer-seller relationship; and potential competition -- or conglomerate mergers -- in which a new firms is likely to enter the market and become a potential competitor of the initial market's firms...
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