WESTWARD EXPANSION INDUSTRIALIZATION URBANIZATION 1870 1900
ROBBER BARONS
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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They restricted immigration, thereby limiting the number of industrialists who could compete with them.
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They eliminated competition and allowed certain businessmen to control entire industries.
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They loaned large amounts of money to businessmen, thereby enabling them to invest in new industries.
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They paid large amounts of interest to finance capitalists in exchange for business loans.
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Detailed explanation-1: -How did monopolies and trust enable businessmen like Carnegie and Rockefeller to become among the richest and most powerful men in the world? They eliminated competition and allowed certain businessmen to control entire industries. What industry was impacted by the Bessemer process?
Detailed explanation-2: -The monopolies they created in the oil and steel industries allowed them to control the prices of their goods; thus keeping them as high as possible. There was limited competition in the market to undercut their prices.
Detailed explanation-3: -Gradually, he created a vertical monopoly in the steel industry by obtaining control over every level involved in steel production, from raw materials, transportation and manufacturing to distribution and finance. By 1897, he controlled almost the entire steel industry in the United States.
Detailed explanation-4: -Powerful industrialists like Carnegie and Rockefeller were called both “Captains of Industry” and “Robber Barons” because. they worked closely with their competitors and charged consumers incredibly high prices. they supported workplace reform but drove their competitors out of business.
Detailed explanation-5: -Natural monopolies are allowed when a single company can supply a product or service at a lower cost than any potential competitor but are often heavily regulated to protect consumers.