Exploring John D. Rockefeller and the Standard Oil Trust

The video tutorial discusses John D. Rockefeller's role in the rise of trusts and monopolies, focusing on his creation of the Standard Oil Company. Rockefeller faced competition from 26 oil refiners and believed that market saturation reduced profits. To control the market, he bought out 22 competitors, forming a monopoly that controlled 95% of U.S. oil production. This strategy allowed him to manipulate supply and demand, increasing prices and profits. The video also covers the formation of trusts, which legally combined firms to reduce competition.

Who was John D. Rockefeller?

• A government official

• A railroad owner

• An oil industry worker

• A monopolistic entrepreneur

What was the primary business of the Standard Oil Company?

• Cotton processing

• Steel manufacturing

• Oil refining

• Railroad transportation

What economic principle did Rockefeller use to justify reducing competition?

• Consumer choice theory

• Market equilibrium

• Cost-benefit analysis

• Supply and demand

How many competitors did Rockefeller buy out to form his monopoly?

• 30

• 26

• 22

• 10

What percentage of the U.S. oil production was controlled by Rockefeller's company?

• 75%

• 85%

• 95%

• 100%

What is a trust in the context of business?

• A type of investment fund

• A savings account

• A legal agreement between firms

• A government regulation

What was the effect of forming the Standard Oil Trust on competition?

• Data unavailable

• No change in competition

• Increased competition

• Reduced competition

Which business strategy did Rockefeller use to manage his competitors?

• Diversification

• Horizontal consolidation

• Vertical integration

• Cost leadership

What was the outcome of Rockefeller's strategy on the oil market?

• Stabilized oil prices

• Unpredictable oil prices

• Increased oil prices

• Decreased oil prices

What should you do if you have more questions about the topic discussed in the video?

• Read a related book

• Discuss in the next class

• Ignore the doubts

• Rewatch the video