5
AssignmentLong Text

Market Structures and Competition

Question 5 • * HSA 26-27 Economics

Think about Standard Oil's business practices. In three to four sentences, explain why there was such a strong negative feeling toward the Standard Oil monopoly.Use details from the lesson and reading.

Answer

Answer:

Standard Oil created negative feelings because it used its enormous power to eliminate competition rather than compete fairly. It received secret railroad rebates, lowered prices to drive smaller companies out of business, and bought or forced competitors to join its trust. Once it controlled most of the oil industry, it could control prices and limit consumers’ choices, making people fear that one company had too much economic power.

Previous
Next