monopolies and trusts
Post on 23-Jun-2015
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Gaining the Competitive Edge
Monopoly: Complete control of a product or service
Cartel: A loose association of business that make the same productExample: OPEC
The Standard Oil TrustJohn D. Rockefeller: Formed the
Standard Oil Company
Transported oil at a low cost=could set prices lower than competition
Wanted to buy out competition= against the law
Trust: A group of several businesses that get together under one group of people (a single managing board) without merging their companies.
Trusts limit competition
Sherman Antitrust ActOutlawed any
combination of companies that restrained interstate trade of commerce.
Rarely enforced/vague wording
Limited power of BIG BUSINESS
19th-century political cartoon of Rockefeller, caricatured as "King
of the World" sitting on a barrel of oil. (©Bettman/CORBIS)
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