Answered

Explore a diverse range of topics and get answers from knowledgeable individuals on IDNLearn.com. Discover reliable and timely information on any topic from our network of experienced professionals.

Why was Carnegie Steel considered a vertical monopoly?

Sagot :

Gibbsidn
Carnegie Steel was considered a vertical monopoly because the company bought up the companies or firms that provided the inputs necessary to develop the company. Therefore, Carnegie Steel owned the supply chain and was able to create a "vertical monopoly."
MsEleanoridn

The company owned all of the industries needed to create steel.

Vertical integration is an economic method of buying or creating companies that are needed to create another product. A vertical monopoly would suggest the company has bought all of the supply companies and control all of the production of the product in question.

Carnegie used vertical integration to create steel at a lower price than other companies. He owned iron mines and railroad companies so he was able to access the iron used to make the steel and then use his own railroad companies to transport his company's steel. With this process, no other company could produce steel as cheaply as Carnegie could and that allowed Carnegie to buyout other steel companies as well.

Thank you for using this platform to share and learn. Keep asking and answering. We appreciate every contribution you make. Accurate answers are just a click away at IDNLearn.com. Thanks for stopping by, and come back for more reliable solutions.