Learning Path
Question & Answer1
Understand Question2
Review Options3
Learn Explanation4
Explore TopicChoose the Best Answer
A
A merger between two large technology firms that reduces market competition
B
A labor union organizing a strike to demand better wages
C
A small business filing a lawsuit against a larger competitor for unfair practices
D
A government investigation into price-fixing among several pharmaceutical companies
Understanding the Answer
Let's break down why this is correct
Answer
The Sherman Antitrust Act was created to stop companies from fixing prices or monopolizing markets. The most famous early use was the 1911 breakup of Standard Oil, where the U. S. government argued that the company’s control of oil pipelines and refineries forced competitors out and raised prices for consumers. By suing Standard Oil, the government showed that a single firm could be illegal if it used its power to crush competition.
Detailed Explanation
In the late 1800s, the Sherman Act was first used to stop labor unions from blocking trade. Other options are incorrect because The merger of tech firms is a modern corporate issue, not an early use of the Sherman Act; A small business suing a rival shows unfair competition, but it was not the Act’s first major case.
Key Concepts
Sherman Antitrust Act
Labor Unions
Market Competition
Topic
Sherman Antitrust Act History
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 scenarios best exemplifies a violation 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 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
Ready to Master More Topics?
Join thousands of students using Seekh's interactive learning platform to excel in their studies with personalized practice and detailed explanations.