Final answer:
The Sherman Act of 1890 aimed to prohibit companies from forming monopolies, thus preserving free market competition. It empowered the federal government to break up corporations that restrained trade. This law was a response to the anticompetitive practices emerged from industrialization. So, the correct answer is option 4.
Step-by-step explanation:
The Sherman Act of 1890 was designed to prohibit companies from forming monopolies. This federal law was passed with the intent to preserve free market competition by preventing businesses from engaging in practices that restricted trade such as forming trusts and monopolies.
The Act gave the government the power to break up corporations it believed to be acting in restraint of free trade. The phrase "combinations in restraint of trade" was crucial, as it provided a broad scope for the federal government to take action against anticompetitive practices.
Despite vigorous defense from corporations claiming efficiencies from consolidation, the Sherman Anti-Trust Act stood as a legislative measure to counteract the adverse effects of industrialization on market competition.