49.0k views
1 vote
Unlike Carnegie, Rockefeller first created a ______in which he and his partners combined their oil industries.

a) monopoly
b) competitive market
c) trust
d) partnership

User LZR
by
7.7k points

1 Answer

7 votes

Final answer:

Option (c), Unlike Carnegie, Rockefeller first created a trust to control his oil industry interests, leading to increased market dominance and eventual anti-trust challenges.

Step-by-step explanation:

Unlike Carnegie, Rockefeller first created a trust in which he and his partners combined their oil industries. The trust was a business organization that allowed Rockefeller to gain control over numerous oil companies by having a small group of trustees hold legal ownership. This was done to benefit the investors of Standard Oil, and it was a way to circumvent legal restrictions on forming a monopoly directly. This arrangement enabled Rockefeller to dominate the oil industry, minimize competition, and greatly influence prices.

By employing such a strategy, Rockefeller's Standard Oil Trust at one point controlled a staggering 90% of the nation's oil refineries. While this was not initially illegal, it did raise large anti-trust concerns, resulting in the eventual dissolution of the trust. Rockefeller then turned to a holding company model to maintain his influence and control in the industry.

User Haoqun Jiang
by
7.9k points
Welcome to QAmmunity.org, where you can ask questions and receive answers from other members of our community.