Learning Path
Question & Answer1
Understand Question2
Review Options3
Learn Explanation4
Explore TopicChoose the Best Answer
A
A government agency breaks up a company that controls 70% of the market share to promote competition.
B
A company merges with another to create a more efficient supply chain.
C
A business exceeds its profit goals due to increased consumer demand.
D
A firm offers lower prices to attract more customers in a competitive market.
Understanding the Answer
Let's break down why this is correct
Answer
The Sherman Antitrust Act is used when companies try to control the market in ways that hurt competition. One clear example is when two big companies secretly agree to set high prices for a product, so no other firm can compete. In that case, regulators can investigate and impose penalties because the agreement limits competition and harms consumers. This scenario shows enforcement because the government steps in to stop the collusion and restore a fair market.
Detailed Explanation
The Sherman Antitrust Act stops one company from controlling too much of the market. Other options are incorrect because Some think that making a company bigger automatically violates the law; Growing sales does not mean a company is breaking the law.
Key Concepts
Antitrust Law Enforcement
Market Competition
Monopoly Regulation
Topic
Sherman Antitrust Act Enforcement
Difficulty
medium level question
Cognitive Level
understand
Practice Similar Questions
Test your understanding with related questions
1
Question 1Which of the following actions would most likely violate the Sherman Antitrust Act?
hardHistory
Practice
2
Question 2Which of the following statements accurately reflect the principles and goals of the Sherman Antitrust Act? Select all that apply.
easyHistory
Practice
3
Question 3Which of the following scenarios best exemplifies a violation of the Sherman Antitrust Act?
mediumHistory
Practice
4
Question 4Which of the following actions are typically considered as enforcement measures under the Sherman Antitrust Act? (Select all that apply)
mediumHistory
Practice
5
Question 5Which of the following scenarios best exemplifies the application of the Sherman Antitrust Act in its historical context?
mediumHistory
Practice
6
Question 6Which of the following statements accurately reflect the implications and historical context of the Sherman Antitrust Act? (Select all that apply)
mediumHistory
Practice
7
Question 7What is the correct sequence of events in the application of the Sherman Antitrust Act starting from the identification of a monopoly to its regulation?
mediumHistory
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?
mediumHistory
Practice
9
Question 9Which of the following actions exemplify the application of the Sherman Antitrust Act in regulating monopolies? Select all that apply.
hardHistory
Practice
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