Respond to the following based on your reading. During the Gilded Age, business leaders pushed to force out of business or buy out competitors within their industries. Gaining a majority control of an industry proved to be very profitable for tycoons because they were able to set prices for the goods and services they provided. Collections of businesses owned by the same person or group of people became known as trusts. A business that controls an entire industry is known as a monopoly. Why might a monopoly or a trust in a certain industry be bad for both consumers and workers?

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lovelove83 lovelove83

02-11-2018
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Respond to the following based on your reading. During the Gilded Age, business leaders pushed to force out of business or buy out competitors within their industries. Gaining a majority control of an industry proved to be very profitable for tycoons because they were able to set prices for the goods and services they provided. Collections of businesses owned by the same person or group of people became known as trusts. A business that controls an entire industry is known as a monopoly. Why might a monopoly or a trust in a certain industry be bad for both consumers and workers?

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Skilled workers in such an industry have to work for the trust/monopoly or not work in their skill set. This gives the employer much leverage in pay/benefit negotiations.

Since consumers have no choice but to buy from the trust/monopoly they have to pay (usually) higher prices than they would if there were competition between businesses owned by different people.

Without competition there might be little incentive to improve product quality and to develop new products.