Learning Path
Question & Answer1
Understand Question2
Review Options3
Learn Explanation4
Explore TopicChoose the Best Answer
A
Preventing Monopolies
B
Encouraging Competition
C
Regulating Prices
D
Promoting Monopolies
Understanding the Answer
Let's break down why this is correct
Answer
Monopoly is a company that dominates a market, so the Sherman Antitrust Act is the law that stops such dominance. It was created to break up or prevent monopolies and keep competition alive. The Act gives the government power to sue companies that unfairly limit trade. For example, if one firm tries to buy every competitor, the Act allows regulators to intervene and restore fair pricing. Thus, the Sherman Act enforces competition and prevents market control by a single firm.
Detailed Explanation
The law stops a single company from becoming too powerful. Other options are incorrect because Some think the law’s main job is to create competition, but it works by stopping bad practices first; The Act does not set or limit prices directly.
Key Concepts
Monopoly Prevention
Antitrust Law Enforcement
Market Competition
Topic
Sherman Antitrust Act Enforcement
Difficulty
easy level question
Cognitive Level
understand
Practice Similar Questions
Test your understanding with related questions
1
Question 1Sherman Antitrust Act : Monopoly :: Clayton Antitrust Act : ?
mediumHistory
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 3Sherman Antitrust Act:Labor Unions :: Clayton Antitrust Act:?
easyHistory
Practice
4
Question 4What 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
5
Question 5Which of the following cases best exemplifies the application of the Sherman Antitrust Act in the context of regulating monopolies, and why?
mediumHistory
Practice
6
Question 6The Sherman Antitrust Act was primarily applied to regulate __________ in order to promote fair competition and prevent monopolies.
easyHistory
Practice
7
Question 7Sherman Antitrust Act Application : Northern Securities Trust :: Clayton Antitrust Act : ?
mediumHistory
Practice
8
Question 8Which 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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