By creating monopolies and establishing trusts, industrial leaders of the late 1800s primarily:

• A. encouraged the entry of new firms into the market
• B. increased consumer choice and product variety
• C. sought to reduce competition and control market prices
• D. promoted perfect competition in their industries

Answer: (C)

Verified step by step guidance

1. Step 1: Understand the historical context of monopolies and trusts in the late 1800s. Industrial leaders formed monopolies and trusts to consolidate control over industries.
2. Step 2: Recognize the economic goal of these monopolies and trusts. They aimed to reduce competition by merging firms or creating agreements that limited rivalry.
3. Step 3: Analyze the effect on market prices. With reduced competition, these entities could influence or control prices rather than letting market forces determine them.
4. Step 4: Contrast this with other options: encouraging new firms or increasing consumer choice would increase competition, which monopolies sought to avoid.
5. Step 5: Conclude that the primary purpose was to reduce competition and control market prices, which is consistent with the behavior of monopolies and trusts.