What strategy does Rockefeller employ to counter his competition?

• A. Raises prices on his oil
• B. Shuts down oil wells near Pittsburgh
• C. Buys out his competitors
• D. Increases production of oil

Answer: (B)

Rockefeller's strategy to counter competition primarily revolved around consolidating control over the oil industry, which he often achieved through buying out his competitors. By acquiring their companies, he eliminated competition wholesale, ensuring that Standard Oil would dominate the market. This not only allowed him to control prices and market share but also streamlined operations under one umbrella, leading to greater efficiencies.

While raising prices would often drive consumers away and shutting down oil wells would reduce supply—ultimately counterproductive strategies—buying out competitors directly strengthened Rockefeller's position in the market. Increasing oil production could potentially lead to lower prices and competition, which did not align with Rockefeller's goal of reducing competition and securing a monopoly over the oil industry.

By focusing on acquisitions, Rockefeller was able to methodically dismantle the competitive landscape and reinforce his power within the industry.