a) If Ford (a manufacturer of cars) merges with Goodyear (a manufacturer of automobile tires) would that be considered a horizontal or vertical merger. Please explain.

A merger with Ford and Goodyear would be considered a vertical merger. They are considered a vertical merger because the firms are in the same market and supply chain and are combining together to make a single firm. The businesses are in different stages of production, but they will make a single product (a car) together.

(b) Will this merger lead to an increase in concentration in either the car manufacturing industry or in the automobile tire manufacturing industry? Please explain. < Just need help with this one!