The Clayton Anti-Trust Act

question 56

Multiple Choice

The Clayton Anti-Trust Act

• A) weakened the Sherman Anti-Trust Act.
• B) placed more restrictions on business activities that could lead to restraint of trade and federal lawsuits.
• C) prohibited companies having more than 500 employees.
• D) was vague about the specific illegal practices that constituted "restraint of trade."
• E) protected archaeological sites in the Southwest.

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Definitions:

Total Costs

The sum of all expenses a company incurs to produce its goods or services, including fixed and variable costs.

Average Variable Costs

The total variable costs of production divided by the quantity of output produced.

Fixed Costs

Fixed costs are business expenses that remain constant regardless of the level of production or sales, such as rent, salaries, and insurance.