9
QuizMultiple Choice

Monopolies and Trusts

Question 9 • RS AZ-US History A

Why was Carnegie Steel able to offer its product more cheaply than its competitors?

Answer
A
Carnegie made an inferior product, so it was less expensive to produce.
B
Carnegie cut corners in his production, lowering his costs.
C
Carnegie could cut his costs because he owned the supply of raw materials and the means of production and distribution.
D
Carnegie avoided using the Bessemer process, decreasing the cost of production.

Explanation

Carnegie Steel used vertical integration: Carnegie controlled key parts of the business, including raw materials, production, and distribution. This reduced the costs of buying supplies and transporting steel, allowing the company to sell its product more cheaply. The lower price was not because Carnegie made inferior steel or avoided the Bessemer process.

AI-written and checked against the verified answer.

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