In order to eliminate competition business decreased the price of their product.
By cutting their prices, they attract more costumers. This is because customers like to buy goods at the lowest possible price. Hence they effectively eliminate some competition.
Business leaders in the 1800s tried to eliminate competition by forming pools, trusts, monopolies, and through vertical and horizontal integration. Many companies organized pools to keep prices at a certain level, that is, they tried to keep prices from falling.
