Question

How was Rockefeller able to build his monopoly across the oil industry?

He bought up oil refineries, cut costs, and reinvested his profits in other refineries.
He confined his business to Ohio so he could buy all the refineries there.
He found newer and cheaper ways to refine oil, increasing his profits.
He began to sell kerosene as well as oil, expanding his market.

Answer 1

He bought up oil refineries, cut costs, and reinvested his profits in other refineries.

Step-by-step explanation:

Answer 2

Original Question: How was Rockefeller able to build his monopoly across the oil industry?

Answer: He bought up oil refineries, cut costs, and reinvested his profits in other refineries.

Explanation:

• Choice 1 is correct because Rockefeller employed a business strategy called 'horizontal expansion' which essentially bought up all the oil companies and made deals with other industries that transported oil to cut costs. The savings made would be used essentially to reinvest in the business. By buying out all the small companies, he would have control over the prices of the oil and over the entire industry
• Choice 2 is incorrect because for Rockefeller to control the entire oil industry, he had to go out nationally as oil production was never confined to the state of Ohio
• Choice 3 is incorrect, because Rockefeller never ever made such discoveries
• Choice 4 is incorrect, because selling kerosene allowed him to make more profit but didn't necessite to him controlling the entire market