Assertion(A): In the 18th century, European merchants found it difficult to expand production within towns.Reason(R): Towns had a guild system that restricted the entry of new people into the trade.

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Assertion(A): In the 18th century, European merchants found it difficult to expand production within towns.

Reason(R): Towns had a guild system that restricted the entry of new people into the trade.

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Both (A) and (R) are true and (R) is the correct explanation of the assertion.

Both (A) and (R) are true and (R) is not the correct explanation of the assertion.

(A) is true but (R) is false.

(A) is false but (R) is true.

answer is A.

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Detailed Solution

In the 18th century, European merchants found it difficult to expand production within towns because towns had a guild system that restricted the entry of new people into the trade.
Because of their business methods, talents, and scale, merchants could distinguish themselves and form a legitimate economic elite. In the seventeenth and eighteenth centuries, merchants from European cities began to relocate to the countryside as a result of trade guilds, organizations of manufacturers, educated craftsmen, and artisans that prevented new entrants into the trade. These were producer associations that educated artisans, maintained control over production, regulated competition and prices, and barred new entrants into the business. In addition, kings granted other guilds monopolies to produce and trade in specialized products. As a result, new merchants found it difficult to establish themselves in towns. As a result, they moved to the country.

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