C is corrent. An oligopoly is formed by the combination of firms in the same line of business, as in a horizontal merger. An oligopoly is a market for a good or service that is dominated by a small number of firms.
A is incorrect. A divestiture is the sale of a firm or a part of a firm. A divestiture could reduce market dominance but would not increase it.
B is incorrect. A vertical merger occurs between a firm and its suppliers or customers. It would not result in domination of a product market.
D is incorrect. A conglomerate merger occurs between companies in totally different industries so it would not create on oligopoly.
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