Learning Path
Question & Answer1
Understand Question2
Review Options3
Learn Explanation4
Explore TopicChoose the Best Answer
A
monopolies
B
partnerships
C
cooperatives
D
conglomerates
Understanding the Answer
Let's break down why this is correct
Answer
The Sherman Antitrust Act was primarily designed to prevent the formation of monopolies that could restrict competition in the marketplace. By outlawing agreements that would give a single company or a group of companies too much market power, the law keeps prices fair and encourages new businesses to enter. For example, if a large factory tried to buy every other factory in its region, it could set prices high and shut out competitors. The Act stops such consolidation, allowing consumers and smaller firms to thrive.
Detailed Explanation
The Act was made to stop one company from controlling most of a market, because that company can set higher prices or block new sellers. Other options are incorrect because Some people think two or more business owners working together automatically stop competition, but they simply share profits and customers; A cooperative is a group of producers that sell together, but they usually compete with other sellers outside the group.
Key Concepts
Antitrust legislation
Market competition
Economic power
Topic
Sherman Antitrust Act
Difficulty
easy level question
Cognitive Level
understand
Practice Similar Questions
Test your understanding with related questions
1
Question 1What was the primary purpose of the Sherman Antitrust Act when it was enacted?
mediumHistory
Practice
2
Question 2What was the primary goal of the Sherman Antitrust Act?
easyHistory
Practice
3
Question 3The Sherman Antitrust Act was primarily enacted to prevent __________ and promote fair competition in the marketplace.
easyHistory
Practice
4
Question 4Arrange the following events in the correct chronological order regarding the enforcement of the Sherman Antitrust Act: A) The Act is used against labor unions, B) The Act is enacted by Congress, C) The political focus shifts towards regulating large corporations, D) The Act is passed with overwhelming support in Congress.
mediumHistory
Practice
5
Question 5The Sherman Antitrust Act, enacted in 1890, was primarily aimed at preventing __________ that interfered with interstate trade.
hardHistory
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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