Final answer:
True, when companies in the same industry merge for economies of scale and product expansion, it's called a horizontal merger. This allows for growth, efficiency, and competitive advantage. Vertical mergers involve companies at different production stages.
Step-by-step explanation:
When companies in the same industry merge to achieve economies of scale and expand their product lines, it is indeed called a horizontal merger. This type of merger occurs when two or more firms that produce the same kind of product join forces.
Through a horizontal merger, a company can grow larger, become more efficient, acquire new product lines, eliminate rivals, or even lose its corporate identity. This contrasts with a vertical merger, which involves companies at different stages of production merging to protect against the loss of suppliers and to streamline the process. Both types of mergers are strategies for business growth and expansion.