What was the purpose of the sherman antitrust act of 1890?
a.
to limit the amount of power corporations could have on commerce and trade
b.
to limit the amount of money a corporation could donate to a political candidate
c.
to legalize the formations of trusts and monopolies
d.
to decrease the influence of the government on corporations

The correct answer is A.

The Sherman Antitrust Act was the first federal law, enacted in 1890, with the aim of preventing the formation of monopolies (or market structures where few corporations gathered excessive market power) and of combating any other market practices that prevented competition, such as reaching cooperation agreements among competitors and constituting cartels.

The situations that this act outlawed, were highly beneficial for businesses but, in turn, negative for consumers and for social welfare. When firms were not forced to compete they could charge higher prices and they did not care too much for the quality of the products manufactured or the productivity of their operations.

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