Question

why was carnegie steel considered a vertical monopoly?
○ the company controlled every step of steel production, from raw materials to distribution.
○ the company controlled all the steel plants in the country.
○ the company was able to produce more steel than any other steel company in the world.
○ the company became the only source of steel after competitors went out of business.

Explanation:

To determine why Carnegie Steel was a vertical monopoly, we analyze the options:

• A vertical monopoly involves controlling all stages of production for a good.
• Option 1: States the company controlled every step from raw materials to distribution, which matches the definition of vertical integration (and thus a vertical monopoly as it controlled the entire vertical chain).
• Option 2: Controlling all steel plants would be a horizontal monopoly (controlling similar stages, not vertical).
• Option 3: Producing more than others relates to output volume, not vertical control.
• Option 4: Being the only source after competitors failed is a monopoly from eliminating competition, not vertical control.

Answer:

The company controlled every step of steel production, from raw materials to distribution.