Learning Path
Question & Answer1
Understand Question2
Review Options3
Learn Explanation4
Explore TopicChoose the Best Answer
A
Identification of a monopoly → Government investigation → Court ruling → Regulation
B
Government investigation → Identification of a monopoly → Court ruling → Regulation
C
Court ruling → Identification of a monopoly → Government investigation → Regulation
D
Regulation → Court ruling → Identification of a monopoly → Government investigation
Understanding the Answer
Let's break down why this is correct
Answer
When a company is suspected of holding monopoly power, regulators first gather evidence of anticompetitive practices such as price fixing or exclusive contracts. If the evidence is strong, they file a civil complaint in federal court under the Sherman Act, claiming the company violates the law. The court then reviews the case, hearing arguments from both the government and the company, and may order injunctions or fines while the case proceeds. If the court finds the company guilty, it can issue orders to break up the firm, limit its market power, or prohibit certain conduct. Finally, the government monitors compliance, adjusting regulations or imposing further penalties if the company fails to follow the court’s directives.
Detailed Explanation
First, a monopoly is spotted. Other options are incorrect because This answer assumes the investigation starts before the monopoly is even known; It suggests the court decides first, then the monopoly is known and investigated.
Key Concepts
Sherman Antitrust Act
Monopoly regulation
Government intervention
Topic
Sherman Antitrust Act Application
Difficulty
medium level question
Cognitive Level
understand
Practice Similar Questions
Test your understanding with related questions
1
Question 1Sherman Antitrust Act : Monopoly :: Clayton Antitrust Act : ?
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Practice
2
Question 2Which of the following statements accurately reflect the principles and goals of the Sherman Antitrust Act? Select all that apply.
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3
Question 3Monopoly:Market Control :: Sherman Antitrust Act: ?
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4
Question 4Which scenario best illustrates the enforcement of the Sherman Antitrust Act?
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5
Question 5Which of the following scenarios best exemplifies a violation of the Sherman Antitrust Act?
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Practice
6
Question 6Which of the following scenarios best exemplifies the application of the Sherman Antitrust Act in its historical context?
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7
Question 7Which of the following statements accurately reflect the implications and historical context of the Sherman Antitrust Act? (Select all that apply)
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Practice
8
Question 8Which of the following cases best exemplifies the application of the Sherman Antitrust Act in the context of regulating monopolies, and why?
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Practice
9
Question 9Which of the following actions exemplify the application of the Sherman Antitrust Act in regulating monopolies? Select all that apply.
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Practice
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