Which was one way businesspeople tried to eliminate competition
A: They formed monopolies or trusts.
B: They decreased the price of their products.
C: They developed overseas markets.
D: They paid higher wages to their workers.
A: They formed monopolies or trusts.
A: They formed monopolies or trusts.
The correct answer is A: They formed monopolies or trusts.
To arrive at this answer, we need to understand the actions taken by businesspeople to eliminate competition during a specific period in history, often referred to as the Gilded Age in the United States. In this era, businessmen sought to control their industries by reducing or eliminating competition.
One approach utilized by businesspeople was the formation of monopolies or trusts. Monopolies existed when a single company controlled the entire market for a particular product or service, eliminating any competition. Trusts, on the other hand, involved several companies in the same industry combining their assets and forming a single entity, effectively destroying competition by consolidating their power.
To eliminate competition, businesspeople would engage in tactics such as using predatory pricing (selling products at very low prices to drive competitors out of business), engaging in anti-competitive practices, or even forming agreements between companies to avoid price competition. These actions would give them control over the market and effectively eliminate competition.