Answer:
Step-by-step explanation:
Before the Industrial Revolution, most goods were produced by people in their own homes. They handmade items, which was quite expensive and time-consuming.
People wanted to make the process of production much faster, so they looked for solutions. New inventions, like the cotton gin and power loom, allowed for efficient production.
Goods were made quicker and they were cheaper. The cottage industry faded out and was replaced by factories and urbanization.
So, yes, the factory system did replace the domestic system and cottage industry.