What is a disadvantage of horizontal integration regarding customer prices?

Horizontal integration involves a strategy where a company acquires or merges with other firms that operate at the same level in the supply chain or in the same industry. A notable disadvantage of this approach is that it can reduce competition in the market. When fewer companies are competing, the combined firm may choose to raise prices since consumers have fewer alternatives available to them. As competition diminishes, there is less pressure to keep prices low, which can lead to an increase in prices for customers. This aspect highlights the potential negative impact of horizontal integration on customer pricing, making the choice about increased prices due to less competition the correct answer. Other options suggest scenarios where prices would decrease or remain lower, which do not align with the realities of reduced competition resulting from horizontal integration.