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59
Explain the US steel situation. How much capacity did US steel control? Does the Supreme court find this merger ok?
Carnegie Steel has a strong backwards vertical integration. Federal and National Steel have strong forward vertical integration. The three firms horizontally merge to crate US Steel that has full vertical integration. Individually, they are worth $700 million, together, they are worth $1.4 billion because of economies of scale.
US Steel controlled 1/2 of steel making capacity and huge amounts of cole, ore, and transportation.
Supreme court is chill with it all because they didn't do anything to harm consumers.
US Steel controlled 1/2 of steel making capacity and huge amounts of cole, ore, and transportation.
Supreme court is chill with it all because they didn't do anything to harm consumers.
Flashcard info:
Author: savhighsmith
Main topic: Economics
Topic: History of Economics
School / Univ.: UGA
City: Athens
Published: 12.10.2010