Trusts and Big Business – Flashcards
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A government is laissez-faire when it
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does not interfere with business affairs and does not regulate its actions
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How much did the government regulate business practices during the Gilded Age?
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It barely regulated businesses at all.
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Why was Carnegie Steel able to offer its product more cheaply than its competitors?
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Carnegie could cut his costs because he owned the supply of raw materials and the means of production and distribution.
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What was the core business that made Standard Oil a horizontally integrated monopoly?
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refining oil
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How was Rockefeller able to build his monopoly across the oil industry?
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He bought up oil refineries, cut costs, and reinvested his profits in other refineries.
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Which statement is true about the relationship between a monopoly and its competition in a market?
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Monopolies are formed when they buy out their competition in a market.
