USA HISTORY

Detailed explanation-1: -A vertical monopoly refers to a monopolistic company that uses vertical integration. This means that the company owns the process from the production of raw materials to the distribution of the products to the consumer. A significant example of a vertical monopoly was Carnegie Steel.

Detailed explanation-2: -Answer and Explanation: Andrew Carnegie created a monopoly in the steel industry. Construction of Carnegie’s first steel mill began in 1872. The mill capitalized on technological advances and low wages to produce cheap high-quality steel.

Detailed explanation-3: -In addition, Carnegie Steel bought up its sources of raw materials and shipping (in a strategy called vertical integration) and bought out and absorbed its competitors (horizontal integration) to dominate the steel industry.

Detailed explanation-4: -Vertical Integration was first used in business practice when Andrew Carnegie used this practice to dominate the steel market with his company Carnegie Steel. It allowed him to cut prices and exhuberate his dominance in the market. Currently, this is considered a vertical monopoly and is illegal as an entity.

Detailed explanation-5: -Once he did make it into the steel industry he adapted the style of vertical integration. This this business style can be seen as a monopoly due to its control of the complete process of a product. This meant that he controlled every aspect from the barges, steel mills, the mines, and the transportation of the product.