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?

Question

John Moses

Social Studies

23 July, 14:28

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?

+5

Answers (1)

Know the Answer?

Bernard Chan · Answer 1

A monopoly establishes a market without competition, which does not allow the consumer to have product and price options and is obliged to buy the product at the price that the monopoly wants. The lack of competitors also contributed to the product being sold at high prices and that there is no pursuit of increasing the quality of this product.

In relation to workers, as the monopoly dominates an entire market sector, it means that professionals in that sector are limited to a single company, which can result in lower wages, few benefits and poor working conditions.