Excerpt From: Chapter 4 by Jenny Schlie on Jun 17, 2010

1. Gaining the Competitive Edge
 Monopoly:
Complete control of a
product or service
 Cartel: A loose
association of
business that make
the same product
Example: OPEC

2. The Standard Oil Trust
 John D.
Rockefeller:
 Formed the
Standard Oil
Company
 Transported oil at a
low cost=could set
prices lower than
competition
 Wanted to buy out
competition=
against the law

3.  Trust: A group of
several
businesses that
get together
under one group
of people (a
single managing
board) without
merging their
companies.
 Trusts limit
competition

4. Sherman Antitrust Act
 Outlawed any
combination of
companies that restrained
interstate trade of
commerce.
 Rarely enforced/vague
wording
 Limited power of BIG
BUSINESS
19th-century political cartoon of
Rockefeller, caricatured as "King of the
World" sitting on a barrel of oil.
(©Bettman/CORBIS)