WESTWARD EXPANSION INDUSTRIALIZATION URBANIZATION 1870 1900
AMERICAN INDUSTRY DEVELOPMENT IN THE GILDED AGE
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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They encourage people to vote for political machines.
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They are bad for immigrants coming to America
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They are a threat to the U.S. because they can control prices.
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They force the U.S. to become an ally to neighboring countries
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Detailed explanation-1: -Monopolies are bad because they control the market in which they do business, meaning that they have no competitors. When a company has no competitors, consumers have no choice but to buy from the monopoly. The company has no check on its power to raise prices or lower the quality of its product or service.
Detailed explanation-2: -Essentially, these laws prohibit business practices that unreasonably deprive consumers of the benefits of competition, resulting in higher prices for products and services. The three major Federal antitrust laws are: The Sherman Antitrust Act. The Clayton Act.
Detailed explanation-3: -Monopolies are generally considered to be bad for consumers and the economy. When markets are dominated by a small number of big players, there’s a danger that these players can abuse their power to increase prices to customers.
Detailed explanation-4: -Monopolies contribute to market failure because they limit efficiency, innovation, and healthy competition. In an efficient market, prices are controlled by all players in the market because supply and demand swing more toward equilibrium.
Detailed explanation-5: -They became huge economic and political forces. They were able to manipulate price and quality without regard for the laws of supply and demand. Basic economic principles no longer applied They also had great political power. Trusts were extremely influential in Congress and in the Senate.