If two firms deal in the same product but in separate markets, it is called a _____ merger.
Answer & explanation
Correct answer: option 3
The correct answer is option (3) - Market Extension.
A market extension merger takes place between two companies that deal in the same products but in separate markets. The main purpose of the market extension merger is to make sure that the merging companies can get access to a bigger market and that ensures a bigger client base.