Monopolies and Trusts

Question 1

Which statement is true about the relationship between a monopoly and its competition in a market?

Revolt · Accepted Answer

Monopolies are formed when businesses buy out their competition in a market.

Question 2

In which business did Andrew Carnegie create a monopoly?

Revolt · Accepted Answer

the steel business

Question 3

During the Gilded Age, how did the US Congress act to increase business competition?

Revolt · Accepted Answer

Congress passed laws that would control the growth of monopolies.

Question 4

A government is laissez-faire when it

Revolt · Accepted Answer

does not interfere with business affairs and does not regulate its actions.

Question 5

Which business practice did Rockefeller repeatedly use that helped him succeed in building his oil monopoly?

Revolt · Accepted Answer

In all his businesses, Rockefeller made a profit and used it to expand or buy other businesses.

Question 6

What made Standard Oil a horizontal integration monopoly?

Revolt · Accepted Answer

It owned ninety percent of US oil refineries.

Question 7

What was the core business that made Standard Oil a horizontally integrated monopoly?

Revolt · Accepted Answer

refining oil

Question 8

How was Rockefeller able to build his monopoly across the oil industry?

Revolt · Accepted Answer

He bought up oil refineries, cut costs, and reinvested his profits in other refineries.

Question 9

Why was Carnegie Steel able to offer its product more cheaply than its competitors?

Revolt · Accepted Answer

Carnegie could cut his costs because he owned the supply of raw materials and the means of production and distribution.

Question 10

What was the main reason that Carnegie invested in the Frick Coke Company?

Revolt · Accepted Answer

He wanted to make sure he could always get fuel for his steel plant.

Monopolies and Trusts Answers