Question

John D. Rockefeller was able to monopolize the oil market, due to

A) driving out or buying other oil industries; hiring only immigrants and former slaves, so he was able to pay workers far less money; received large investments from wealthy Americans that allowed him to excel quicker
B) vertical consolidation- buying/driving out all other oil companies and/or entrepreneurs and horizontal consolidation- buying into all other industries needed to minimize costs, maximize profits, and dominate the oil market
C) horizontal consolidation- buying/driving out all other oil companies and/or entrepreneurs and vertical consolidation- buying into all other industries needed to minimize costs, maximize profits, and dominate the oil market
D) driving out or buying other oil industries; hiring only immigrants and former slaves, so he was able to pay workers far less money; invested money into the campaigns of major political leaders to avoid strict business laws

Answer 1

Answer: C) horizontal consolidation- buying/driving out all other oil companies and/or entrepreneurs and vertical consolidation- buying into all other industries needed to minimize costs, maximize profits, and dominate the oil market

Explanation: John D. Rockefeller was able to monopolize the oil market, due to horizontal consolidation- buying/driving out all other oil companies and/or entrepreneurs and vertical consolidation- buying into all other industries needed to minimize costs, maximize profits, and dominate the oil market. This is different from vertical integration, which involved owning businesses that are involved in making a final, finished good, also to lower lower costs associated with production.

Answer 2

The correct answer is C) horizontal consolidation-driving/buying out all other oil companies and /or entrepreneurs and vertical consolidation- buying into all industries needed to minimize costs, maximize profits, and dominate the oil market.

John D. Rockefeller was able to monopolize the oil market due to horizontal consolidation-driving/buying out all other oil companies and /or entrepreneurs and vertical consolidation- buying into all industries needed to minimize costs, maximize profits, and dominate the oil market.

John D. Rockefeller was the owner of the Oil-Standard Company. This Company practically controlled all the oil industry from 1870 to 1911. He created a monopoly by buying almost all the other oil companies and he had a vertical consolidation acquiring transportation and warehousing companies in order to reduce costs to a minimum and maximizes profits. He controlled the production process of oil, shipment, transportation, and selling.