What happens when a business achieves an economy of scale?

Costs fall, goods produced fast in large quantities.

What was the purpose of retail catalogs?

advertise to consumers who lived in rural areas

What effect did large corporations have on small businesses?

Many small businesses couldn't compete and shut down.

How were pools used to reduce competition in a market?

Businesses would agree to keep prices at a certain level.

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Ch.3 Industrialization Lesson 3 Big Business Quiz

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McGraw-Hill Ed Ch.3 Lesson 3 Big Business

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Questions 10

Answers

1
_ does not produce products, but owns stock in companies that do.
corporation
monopoly
holding company
trust
2
____ is a big business owned by many people but treated by law as a person.
corporation
manufacturer
partnership
conglomerate
3
How did John D. Rockefeller achieve control of 90 percent of the oil market?
through federal grants
by discovering huge oil reserves in Alaska
by splitting into many small firms
through horizontal integration
4
What happens when a business achieves an economy of scale?
Demand increases while manufacturing decreases output.
Gov regulates the business as an industrial entity.
Market glutted by an overabundance of one type of product.
Costs fall, goods produced fast in large quantities.
5
What was the purpose of retail catalogs?
enhance newspaper ads
encourage the purchase of company stock
advertise to consumers who lived in rural areas
help keep prices stable among consumer markets
6
Which of the following is an example of a fixed cost for a company?
taxes
raw materials
wages
shipping costs
7
How did Andrew Carnegie make his Pittsburgh steel company more efficient?
by lobbying for lower tariffs
by producing his products in Europe
by forming a partnership with the railroads
through vertical integration
8
What effect did large corporations have on small businesses?
Small businesses were reorganized into corporations.
Small business were regulated by the gov but corp were not.
Corp. invested in small businesses, helping them grow.
Many small businesses couldn't compete and shut down.
9
When a single company maintains control of an entire market
a corporation
vertical integration
profit sharing
a monopoly
10
How were pools used to reduce competition in a market?
Companies agreed to slash prices to increase demand.
Businesses would agree to keep prices at a certain level.
Corporations would promise the government to keep costs low.
Companies would take turns owning the market for a product.

Ch.3 Industrialization Lesson 3 Big Business Quiz Flashcards | StudBud