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

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

Revolt · Accepted Answer

refining oil

Question 3

What business practices contributed most to Andrew Carnegie’s ability to form a monopoly?

Revolt · Accepted Answer

combining his companies into one company and controlling all aspect of steel production

Question 4

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 5

Which company was a monopoly during the Gilded Age?

Revolt · Accepted Answer

Carnegie Steel

Question 6

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.

Question 7

A government is laissez-faire when it

Revolt · Accepted Answer

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

Question 8

How much did the government regulate business practices during the Gilded Age?

Revolt · Accepted Answer

It barely regulated businesses at all.

Question 9

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 10

How do monopolies affect the price of goods?

Revolt · Accepted Answer

Monopolies can lower and raise their prices at will.

Monopolies and Trusts Answers