Question

The Mars acquisition of the Wrigley assets was part of its related constrained diversification and added market share to the Mars/Wrigley integrated firm.

It allowed Mars to gain _______ because it could sell its products above the market level or reduce its costs below the market level.

1) market power
2) vertical integration
3) virtual integration
4) multipoint competition

Answer 1

1) market power

Step-by-step explanation:

Based on the information provided within the question it can be said that this allowed Mars to gain market power. This term refers to a company's ability to manage the products prices above a market level and still prevail over the competition. Mostly because they have a monopoly within the market which is hard to compete against. Which is most likely the case after they acquired the Wrigley assets.