3 Flashcards
What is a Oligopoly?
Market dominated by a few firms
Some control over prices
Products are identical
Game theory
What is Pure Competition?
No company dominates the market
No company had control over prices
Market controls the price
What is the Sherman Anti-Trust Act?
Outlaws any combination of companies that restrained interstate trade or commerce
What is Intertrade?
Trade across statelines
What is intrastate?
Trade from the same state and sold in the same state
Why was the Sherman Anti-Trade Act made?
Trusts Were restricting trade
What did Andrew Carnegie accomplish?
The Carnegie Steel Company
Vertical Consolidation
Believed in social Darwinism
But believed you could educate yourself
What is Vertical Consolidation?
Control all the phases of production
Bought companies that performed all phases of steel production
What are the results of Vertical Consolidation?
Low production costs
Economies of scales
As production increased the cost of each item produced is lower
Sold products cheaply other businesses closed
What is the Gospel of Wealth?
People should be free to make as much money as they can but they should give it away
How much did Andrew Carnegie donate?
350 million dollar to education
3,00” libraries
Funded art and research institutes
Institute on how to abolish war
Who was Andrew Carnegie?
Scottish immigrant
Taught himself how to read
Creates the 1st monopoly
Lowered his price of steel to buy out competition
What is a Monopoly?
Company Control over product quantity and prices
Only producer in the market
Restricts competition,loss of social benefit
