To bypass regulations imposed by the Sherman Antitrust Act and engage in monopolistic behavior, businesses would participate in which of the following activities?(1 point)

Question

To bypass regulations imposed by the Sherman Antitrust Act and engage in monopolistic behavior, businesses would participate in which of the following activities?(1 point)

Responses

mergers
mergers

perfect competition
perfect competition

fair pricing
fair pricing

lawsuits

Answer 1

To bypass regulations imposed by the Sherman Antitrust Act and engage in monopolistic behavior, businesses would typically participate in the following activity:

- Mergers: By merging with other companies in the same industry, a business can consolidate its power and eliminate competition, ultimately creating a monopoly.

It's worth noting that engaging in monopolistic behavior is generally considered illegal under the Sherman Antitrust Act.

Answer 2

To answer this question, we need to understand what the Sherman Antitrust Act is and why it was implemented. The Sherman Antitrust Act is a federal law in the United States that aims to prevent monopolies and promote fair competition in the market. It was enacted in 1890 to protect consumers from anticompetitive practices and ensure that businesses do not engage in monopolistic behavior.

Now, to bypass regulations imposed by the Sherman Antitrust Act and engage in monopolistic behavior, businesses would typically participate in mergers. Merging with or acquiring other companies allows businesses to consolidate their market power, control a larger share of the market, and eliminate or reduce competition.

By participating in mergers, businesses can gain more control over prices, limit consumer choices, and potentially establish a monopoly. This violates the principles of fair competition that the Sherman Antitrust Act seeks to uphold.

While perfect competition and fair pricing are desirable in a healthy market, engaging in mergers would be the activity that allows businesses to bypass regulations and engage in monopolistic behavior. Lawsuits, on the other hand, can be a consequence of antitrust violations and are not a method used by businesses to bypass regulations but rather a potential consequence they may face.