How did the rise of huge industrial cartels affect free market competition?

1 answer:

7 0

Cartels could fix prices and sell at a loss to strangle out competition. Then raise prices afterward which would cover all previous losses.
They could generate income by horizontal integration which would be possibly controlling all retail sales of a certain product.
They could also generate income through vertical integration which meant owning a large portion of the industry (possibly mining) which provided the raw material, the means of production (factories, for example), the means of transporting the product to market (rail roads for example), and even owning the means of selling the product(s) (retailing). They could set the price and costs all along the way. They could also exploit their workers by being the 'only show in town' and therefore setting wages low and working hours high. If a vertically integrated company had to show their books to government auditors they could try to make a case to show a small advantage over competitors at each level of their operation which would come out overall as a major advantage which could put others out of business.
A couple of industries to look at would be the railroads and oil. People to research: Andrew Carnegie, J. D. Rockefeller and other industrialists/robber barons. A student may want to read the works of some of the 'muckrakers' of the era.

You might be interested in

Traditional legend says that Romulus and Remus founded the city of

Lady_Fox [76]

Answer:

A. Rome

Explanation:

Romulus and Remus were twin brothers who were abandoned at birth and raised by a she-wolf. After they grew to adulthood, Romulus and Remus set out to find their own city. When they had come across a land in which each particularity liked, the two brothers had different opinions on where the city should be exactly. (Romulus wanted the city on one hill, and Remus on another) The brothers then decided to have the city where fate destines, and wait for a sign. This only ends up in them clashing and Romulus killing Remus. Romulus then chooses his hill to put the city in, and names it after himself: Rome.

7 0

3 years ago

Why would the vice president take over the president's job? Who becomes president if the vice-president cannot serve as presiden

Aleksandr-060686 [28]

Think of it as a giant chain. You have the President at the top, then followed by the vice president, and so on to the bottom of the chain. if the first link of the chain is broken, then you replace it with the chain link below it. So, the Vice president would replace the President, the Speaker of the House of Representatives would replace the Vice President, and so on.

7 0

3 years ago

Read 2 more answers

Evangelical Protestants in the 1920s felt threatened by new social mores, scientific theories and philosophies, and immigration

Ann [662]

Answer:

Prohibition: rendered it illegal to drink, hold and serve alcohol.
Modernists: a Christian Radical who attempted to incorporate religion and science into secular society and adapt Christianity.
Fundamentalists: a Christian Radical who considered in the Bible's direct translation as the justification of Christian faith.
Former pro baseball player and fundamentalist pastor Billy Sunday.
Harry Emerson Fosdick: Modernist Riverside Church Preacher from New York City.

7 0

3 years ago

Read 2 more answers

TAYAHIN

weeeeeb [17]

Answer:

1. A. Lukas 16:1-15

2. A. Malupit ang amo sa kaniyang alipin :)

5 0

2 years ago

All the knowledge and values shared by a society is called culture. A) True B) False

Effectus [21]