📚 Learning Guide
Sherman Antitrust Act Enforcement
medium

Which of the following actions are typically considered as enforcement measures under the Sherman Antitrust Act? (Select all that apply)

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Choose the Best Answer

A

Breaking up monopolies

B

Regulating prices in competitive markets

C

Preventing mergers that significantly reduce competition

D

Allowing companies to form cartels under certain conditions

E

Investigating and prosecuting anti-competitive practices

Understanding the Answer

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Answer

Enforcement under the Sherman Act usually involves courts ordering injunctions to stop unlawful conduct and awarding damages to harmed parties. Courts may also require disgorgement of profits earned through the illegal activity and restitution to those who were harmed. In some cases, the government can seek civil penalties or even criminal sanctions if the conduct is severe. Finally, the courts can order forfeiture of property or assets that were obtained through the anticompetitive behavior. These tools together help to deter and correct violations.

Detailed Explanation

Breaking up monopolies stops one firm from dominating the market. Other options are incorrect because The Sherman Act does not set prices in competitive markets; The Act forbids cartels, not allows them.

Key Concepts

Sherman Antitrust Act Enforcement
Monopolies and Competition
Regulatory Measures in Economics
Topic

Sherman Antitrust Act Enforcement

Difficulty

medium level question

Cognitive Level

understand

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