Which of the Following Statements Is True About the Sanctions

question 57

Multiple Choice

Which of the following statements is true about the sanctions of the Sherman Act?

• A) Violations may be subject to criminal fines or imprisonment, but not both.
• B) Injured parties may collect a maximum of double damages.
• C) Violations of the Sherman Act may be enjoined by the courts.
• D) Its sanctions are only civil punishments and not criminal punishments.
• E) Crimes under the Sherman Act are misdemeanors.

---

Definitions:

Price-taker Firm

A firm that has no control over the market price and must accept the prevailing market price for its products.

Marginal Revenue

The extra revenue generated by the sale of an additional unit of a product or service.

Marginal Cost

The cost of producing one additional unit of a product or service.

Average Variable Cost

The total variable expenses divided by the number of units produced, representing the variable cost per unit.