How did the development of railroad technology improve profits for companies during the Industrial Revolution?

• A. By increasing the cost of raw materials due to higher demand
• B. By decreasing the speed of product delivery to consumers
• C. By reducing transportation costs and expanding market access for goods
• D. By limiting competition through government regulation of railroads

Answer: (C)

Verified step by step guidance

1. Understand the role of transportation in the Industrial Revolution: Efficient transportation is crucial for moving raw materials to factories and finished goods to markets.
2. Analyze how railroad technology affected transportation costs: Railroads significantly reduced the cost and time required to transport goods compared to previous methods like horse-drawn carts or canals.
3. Consider the impact on market access: Railroads expanded the geographic reach of companies, allowing them to sell products in more distant markets and increase sales volume.
4. Evaluate how reduced transportation costs and expanded markets influence profits: Lower costs and higher sales potential typically lead to increased revenues and improved profit margins for companies.
5. Contrast this with other options: Higher raw material costs or slower delivery would reduce profits, and government regulation limiting competition is unrelated to the direct effect of railroad technology on profits.