Question

Why was Carnegie Steel able to offer its product more cheaply than its competitors?
Carnegie made an inferior product, so it was less expensive to produce.
Carnegie cut corners in his production, lowering his costs.
Carnegie could cut his costs because he owned the supply of raw materials and the means of production and distribution.
Carnegie avoided using the Bessemer process, decreasing the cost of production.

Answer 1

"Carnegie could cut his costs because he owned the supply of raw materials and the means of production and distribution."

He used vertical integration — owning mines, rail lines, mills, and shipping — which reduced costs and gave economies of scale. (He also adopted cost-saving technologies like the Bessemer process rather than avoiding them.)