726
QuizMultiple Choice

Cumulative Exam — Cumulative exam

Question 726 • Career Explorations A

Why was Carnegie Steel considered a vertical monopoly?

Answer
A
The company controlled every step of steel production, from raw materials to distribution.
B
The company controlled all the steel plants in the country.
C
The company was able to produce more steel than any other steel company in the world.
D
The company became the only source of steel after competitors went out of business.

Explanation

A vertical monopoly controls multiple stages of producing and distributing a product. Carnegie Steel owned or controlled steps such as obtaining raw materials, transporting them, making steel, and distributing it. That is why it is described as controlling the process from raw materials to distribution; simply being the largest producer or eliminating competitors would describe other kinds of dominance.

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