Explain the purpose of the Sherman Antitrust Act. Answer Key: The Sherman Antitrust Act made monopolies and limiting competition illegal. Did the student answer correctly?

Answer 1

Yes, the student answered correctly. The Sherman Antitrust Act, enacted in 1890, was designed to promote competition and prevent monopolistic practices in the marketplace. It made it illegal to restrain trade or commerce through monopolies, cartels, or other forms of anti-competitive behavior. The main purpose of the act was to protect consumers and ensure a fair market by prohibiting practices that would limit competition or control prices.