How Did Morgan Achieve His Stunning Reorganization and Consolidation of Businesses

question 20

Multiple Choice

How did Morgan achieve his stunning reorganization and consolidation of businesses in the late nineteenth century?

• A) He sometimes formed holding companies to run his operations.
• B) He used rebates to put his competition out of business.
• C) He refused to get involved in the steel industry,which he considered too speculative.
• D) He sometimes formed a community of interest comprised of a handful of directors.

---

Definitions:

Short Run

A period in economics during which at least one factor of production is considered fixed, typically focusing on the immediate effects of economic decisions.

Monopolistic

Pertaining to a market structure where there is only one producer or seller for a product or service, limiting competition.

Marginal Revenue

The extra income a company earns by selling an additional unit of a product or service.

Marginal Cost

The increase in cost that arises from producing one additional unit of a good or service; it varies depending on the level of production.