Before a company can be considered a monopolist under the Sherman Act, it must demonstrate what?

Study for the CLEP Business Law Test. Engage with flashcards and multiple choice questions, each question has hints and explanations. Prepare effectively for your exam!

In order for a company to be considered a monopolist under the Sherman Act, it is crucial that it demonstrates the power to control price or exclude competition from the market. Monopolistic behavior is characterized by a firm's ability to set prices above the competitive level or to restrict competitors from entering the market. This power is indicative of a firm's dominance in a particular market, leading to a lack of competition and potential harm to consumers through higher prices or reduced choices.

While market share can be a factor in determining monopoly power, it is not the sole criterion. For instance, a firm may have a large market share but still face significant competition. Thus, demonstrating the ability to control prices or exclude competitors is more definitive of monopolistic behavior as it directly relates to the exercise of economic power in the marketplace.

The other options address related concepts—such as market share thresholds, limiting competition, and unfair trade practices—but they do not capture the essence of what constitutes monopoly power under the Sherman Act as effectively as the correct choice does.

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