Learning Path
Question & Answer1
Understand Question2
Review Options3
Learn Explanation4
Explore TopicChoose the Best Answer
A
A company lowering prices to gain market share and attract more customers.
B
Two competing businesses agreeing to set prices at a certain level to eliminate competition.
C
A startup developing a new technology that disrupts an existing market.
D
A corporation expanding its product line to cater to a broader audience.
Understanding the Answer
Let's break down why this is correct
Answer
A violation of the Sherman Antitrust Act happens when companies work together to fix prices or limit competition, which is illegal. The Act stops businesses from colluding to set higher prices or share markets so customers pay more than they should. For example, if two big grocery chains agree to charge the same price for milk and refuse to lower it, that is a classic price‑fixing violation. This collusion keeps prices high and hurts consumers, which is why it is forbidden.
Detailed Explanation
The answer shows two companies agreeing on a fixed price level. Other options are incorrect because Lowering prices is a legal strategy to attract customers; Creating new technology is encouraged by law.
Key Concepts
Antitrust Laws
Monopoly Practices
Market Competition
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 scenario best illustrates the enforcement 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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