CLEP Microeconomics Exam Prep

Answer - C - The Sherman Antitrust Act was passed by Congress in 1890 to strictly limit monopoly power, prohibiting things like separation markets and fixing prices with intent to gain.

Key Takeaway: The government has a series of antitrust laws that have been enacted over the past 150 years in order to limit monopoly power. The first passed was the Sherman Antitrust Act, followed by the Clayton Act in 1913, which outlawed tying contracts and price discrimination with the intent to reduce competition. The Federal Trade Commission was also founded in 1913 to help enforce the antitrust laws.