Learning Path
Question & Answer1
Understand Question2
Review Options3
Learn Explanation4
Explore TopicChoose the Best Answer
A
Price Fixing
B
Trade Union
C
Market Competition
D
Corporate Merger
Understanding the Answer
Let's break down why this is correct
Answer
The Sherman Antitrust Act was created mainly to stop monopolies from controlling markets. The Clayton Antitrust Act was designed to curb other anti‑competitive practices that the Sherman Act didn’t cover, such as price discrimination, exclusive dealing, and tying arrangements. In other words, while the Sherman Act fights outright monopolies, the Clayton Act targets unfair business practices that can lead to monopoly power. For example, if a company sells a product at a lower price to one customer group to drive out competitors, the Clayton Act would allow that practice to be challenged. Thus, the Clayton Act focuses on preventing anti‑competitive conduct like price discrimination.
Detailed Explanation
The Clayton Act was created to protect competition. Other options are incorrect because Price fixing is one specific practice the Act tackles, but the question asks for the broader concept, not a single tactic; Trade unions deal with workers, not market competition.
Key Concepts
Antitrust Legislation
Market Competition
Economic Regulation
Topic
Sherman Antitrust Act
Difficulty
medium level question
Cognitive Level
understand
Practice Similar Questions
Test your understanding with related questions
1
Question 1Monopoly:Market Control :: Sherman Antitrust Act: ?
easyHistory
Practice
2
Question 2Sherman Antitrust Act:Labor Unions :: Clayton Antitrust Act:?
easyHistory
Practice
3
Question 3What 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
4
Question 4Which of the following cases best exemplifies the application of the Sherman Antitrust Act in the context of regulating monopolies, and why?
mediumHistory
Practice
5
Question 5The Sherman Antitrust Act was primarily applied to regulate __________ in order to promote fair competition and prevent monopolies.
easyHistory
Practice
6
Question 6Sherman Antitrust Act Application : Northern Securities Trust :: Clayton Antitrust Act : ?
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
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.