Respuesta :
Standard Oil was an American company dedicated to the production and refining of oil. It was established in 1870 in Ohio by John D. Rockefeller and Henry Flager. It operated until 1911 when the US Supreme court ruled that it was an illegal monopoly.
The text concludes that occasional low prices and the expertise of Rockefeller's partner could not be deterministic factors in the notable competitive advantage that Standard Oil had. Therefore, it had to be the good rates that the company was getting for transporting its oil.
Standard Oil would be become to be one of the biggest companies at the time due to the application of vertical integration. Which consists of acquiring other participants in the supply chain in order to have better cost control and also gain a competitive edge.
Answer:
Standard Oil made higher profits because it received better shipping rates from railroad companies