Question

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

Answer 1

The business practices that contributed most to Andrew Carnegie’s ability to form a monopoly is by combining his companies into one company, and controlling all aspects of steel production.

Further Explanation

Monopoly  

• A monopoly is a type of market structure where there is a single producer and many buyers.
• A single firm controls the market as it has the highest market power and consumers lack other options.  

Features of monopoly

Monopolist maximizes the profit  

Monopoly sets the price  

High barriers to exit and entry to the market  

A sole firm dominates and controls the market  

Example of monopoly

Carnegie Steel

• In the 1970s, Andrew Carnegie believed that controlling all aspects of steel production would help him bring the cost of the production down.  
• He bought companies at every level of steel production from raw materials to distribution and combined all into one company.  
• Carnegie steel then merged with US steel making the largest steel company which was a monopoly and fully controlled all transaction on the steel market at its peak.

Other type of market structures

Perfectly competitive market  

• This is a type of market structure that is hypothetical and is considered to have a very high level of competition.  

Monopolistic competition  

• It is a market structure that has many small firms competing against each other.
• These firms sell similar products that are slightly differentiated in terms of branding, packaging, etc.

Oligopoly  

• A market structure that is dominated by few firms thus there is limited competition.  

Keywords: Monopoly, market structure, example of monopolies

Learn more about:

• Monopoly: brainly.com/question/1619397
• Features of a monopoly: brainly.com/question/1619397
• Types of market structures: brainly.com/question/1619397

Level: High school  

Subject: Business  

Topic: Market structures

Sub-topic: Monopoly

Answer 2

I believe the answer is: d.combining his companies into one company, and controlling all aspects of steel production

Andrew Carnegie believe controlling all aspects of steel production would help him bring the cost of the production down, which is why he buy out every smaller companies who involved in any form of steel productions.

He later on combine all of these companies and absorb them into the Carnegie steel company and fully controlled all transaction on the steel market at its peak.