ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -Congress passed the Sherman Antitrust Act in 1890 as the first federal legislation to prohibit trusts. The act was named after Senator John Sherman of Ohio.

Detailed explanation-2: -Approved July 2, 1890, The Sherman Anti-Trust Act was the first Federal act that outlawed monopolistic business practices. The Sherman Anti-trust Act of 1890 was the first measure passed by the U.S. Congress to prohibit trusts.

Detailed explanation-3: -Key Takeaways. The Sherman Antitrust Act is a law the U.S. Congress passed to prohibit trusts, monopolies, and cartels. Its purpose was to promote economic fairness and competitiveness and to regulate interstate commerce.

Detailed explanation-4: -Antitrust laws are regulations that encourage competition by limiting the market power of any particular firm. This often involves ensuring that mergers and acquisitions don’t overly concentrate market power or form monopolies, as well as breaking up firms that have become monopolies.

Detailed explanation-5: -Section 2 of the Sherman Act: Monopolization While Section 1 of the Sherman Act governs multilateral restraints of trade, Section 2 prohibits unilateral anticompetitive conduct by dominant firms-in a word, monopolization. Section 2 does not prohibit “bigness” standing alone.