Although the traditional ideology of capitalism stresses the benefits of free competition, large corporations suffered from the competitive environment. What economic factor made businesses-railroads in particular-seek to minimize competition?

Question

Quizplus · Accepted Answer

High fixed costs were a significant economic factor that led businesses, especially railroads, to seek ways to minimize competition. Railroads had substantial fixed costs in infrastructure and equipment, which made it difficult to sustain profitability in a highly competitive environment. Reducing competition allowed them to stabilize prices and ensure a more predictable revenue stream.

Although the Traditional Ideology of Capitalism Stresses the Benefits of Free