Question

Which factor contributed to the formation of large corporations during the late 19th century?

Answer 1

The answer is A, not B. 
Corporations were very large because they employed many people on a very low wage.

Answer 2

Answer;

A) Production could be organized more efficiently on a larger scale.

Explanation;

Corporations arose through an increase in industrialization with large-scale agriculture and greater manufacturing and production output. These corporations tapped into natural resources and began to utilize methods that allowed them to maintain and grow their power. One method created by Swift was vertical integration in which a company controlled every aspect of their industry, from the raw materials to the advertising of the finished products.

These large firms then used techniques like predatory pricing to drive their competitors out of business. Rockefeller pioneered horizontal integration in which he forced local companies to merge unto his conglomerate, allowing him to create a trust, monopolizing the entire oil refining industry.