Learning Path
Question & Answer1
Understand Question2
Review Options3
Learn Explanation4
Explore TopicChoose the Best Answer
A
monopolies
B
partnerships
C
cooperatives
D
non-profits
Understanding the Answer
Let's break down why this is correct
Answer
The Sherman Antitrust Act was mainly created to stop the formation of monopolies and to encourage fair competition in the market. By making it illegal for companies to conspire to fix prices or divide markets, the law keeps businesses from dominating a particular industry. This prevents one firm from controlling supply, pricing, or innovation, which would hurt consumers and other businesses. For example, if a single company tried to buy all its competitors, the Act would allow courts to break up that monopoly and restore competition.
Detailed Explanation
The Sherman Act was designed to stop companies from becoming monopolies, which are single firms that control a market and raise prices or limit choices. Other options are incorrect because Partnerships are just a legal way to run a business together, not a rule that stops competition; Cooperatives are groups that work together to help their members, not to block others.
Key Concepts
Antitrust Laws
Market Competition
Monopolies
Topic
Sherman Antitrust Act Enforcement
Difficulty
easy level question
Cognitive Level
understand
Practice Similar Questions
Test your understanding with related questions
1
Question 1The Sherman Antitrust Act was primarily designed to prevent the formation of __________ that could restrict competition in the marketplace.
easyHistory
Practice
2
Question 2What was the primary purpose of the Sherman Antitrust Act when it was enacted?
mediumHistory
Practice
3
Question 3How does the Sherman Antitrust Act Enforcement directly influence market competition?
hardHistory
Practice
4
Question 4The Sherman Antitrust Act, enacted in 1890, was primarily aimed at preventing __________ that interfered with interstate trade.
hardHistory
Practice
5
Question 5What was the primary intent of the Sherman Antitrust Act when it was first enacted?
easyHistory
Practice
6
Question 6The Sherman Antitrust Act was primarily applied to regulate __________ in order to promote fair competition and prevent monopolies.
easyHistory
Practice
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