Corporate consolidation movement
pools were ineffective because
Companies could leave the cooperative arrangement or change its terms on a whim. In highly competitive markets, pools were exceptionally unstable and ineffective in promoting long term growth
Vertical Integration
Practice where a single entity controls the entire process of a product, from the raw materials to distribution as a way to predict cost of production
what did this movement allow
industrialists created and managed national enterprises
Corporate consolidation movement tried to do what as a whole
make competitive industrial economy more predictable
the pool was created to prevent
ruinous competition among tightly clustered competitors
what was the first try
the pool
economic of scale were a double edged word why
while additional production provided immense profits, the high fixed costs of operating expensive factories dictated that even modest losses from selling under-priced goods were preferable to not selling profitably priced goods at all