Question

How did the Carnegies purchase of Allegheny Steel contribute to the formation of his monopoly

Answer 1

It gave Carnegie the raw materials he needed while also eliminating other competitors

Answer 2

The purchase enabled Carnegie to create a more effective production method, is the right answer.

Step-by-step explanation:

Andrew Carnegie, a Scottish steel industrialist, built the Carnegie Steel Company in the year 1892. The profit gained from the company made him the richest man of the time in the United States. He used the approach of horizontal integration to buy his competitors and left people with no choice to go to others. Therefore, in his course of developing a steel empire he bought the smaller companies to eradicate competition. Moreover, he employed new and better methods of production. Therefore, all these strategies enabled him to create a steel empire.