Learning Path
Question & Answer1
Understand Question2
Review Options3
Learn Explanation4
Explore TopicChoose the Best Answer
A
It prevents the formation of monopolies that could dictate market prices.
B
It guarantees profits for all businesses regardless of competition.
C
It allows companies to merge freely without restrictions on size.
D
It focuses solely on regulating prices rather than market structures.
Understanding the Answer
Let's break down why this is correct
Answer
The Sherman Antitrust Act stops companies from colluding or taking over rivals in ways that would raise prices and limit choices. By prosecuting unfair mergers, the law keeps more firms in the market, which encourages innovation and lower prices. This means consumers can choose from a wider range of products and services. For example, if a large tech firm tried to buy a smaller competitor that offered a cheaper app, the court could block the deal, keeping the cheaper app available. Consequently, enforcement keeps competition healthy and benefits buyers.
Detailed Explanation
The Act stops companies from becoming monopolies that could set high prices. Other options are incorrect because Many people think the Act guarantees profits for all businesses, but that is not true; Some think the Act lets any company combine into huge groups, but it actually restricts merges that hurt competition.
Key Concepts
Antitrust Law
Market Competition
Economic Regulation
Topic
Sherman Antitrust Act Enforcement
Difficulty
hard level question
Cognitive Level
understand
Practice Similar Questions
Test your understanding with related questions
1
Question 1What was the primary effect of the Sherman Antitrust Act in the marketplace during the late 19th century?
easyHistory
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 3The Sherman Antitrust Act was primarily enacted to prevent __________ and promote fair competition in the marketplace.
easyHistory
Practice
4
Question 4Which scenario best illustrates the enforcement of the Sherman Antitrust Act?
mediumHistory
Practice
5
Question 5Which of the following actions are typically considered as enforcement measures under the Sherman Antitrust Act? (Select all that apply)
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 7Which 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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