Why does Morgan threaten legal action against Westinghouse regarding AC patent infringement?

• A. To protect his own investments
• B. To encourage innovation in AC technology
• C. Because he knows Westinghouse cannot afford a legal battle
• D. To publicly challenge Westinghouse's legitimacy

Answer: (C)

Morgan's threat of legal action against Westinghouse regarding AC patent infringement stems from the fact that he believed Westinghouse was not in a strong financial position to sustain a legal battle. At that time, Morgan was a powerful financier with significant resources, and he strategically used the threat of litigation to leverage his influence over Westinghouse. By pressuring Westinghouse in this manner, Morgan aimed to assert dominance and control over the burgeoning AC power market, demonstrating how financial power could shape competition in the industry. This tactic was part of the larger battle between AC and DC power systems during that era, where the implications of patent ownership and technology control had significant financial ramifications.

The other options suggest different motivations for Morgan’s actions, including encouraging innovation or challenging legitimacy, but they do not accurately reflect the primary consideration of his strategy, which was rooted in the financial dynamics and power play of the time.