Which of the following is true about the Sherman Act?
A)It made engaging in predatory activities illegal.
B)It prohibited mergers if it led to weakened competition.
C)It encouraged firms to take advantages of the patent system.
D)It prohibited price discrimination.
E)It prohibited price fixing and collusion.

Question

Quizplus · Accepted Answer

The Sherman Act prohibited price fixing and collusion, making it illegal for firms to work together to set prices or limit competition. The other options are incorrect - the Act did not directly address predatory activities, did not encourage firms to take advantage of the patent system, and did not prohibit all mergers, only those that would lessen competition. Although it did address price discrimination, this was not the primary focus of the Act.

Which of the Following Is True About the Sherman Act