Final answer:
The assertion about the Sherman Act's definition of market power is false; the Act addresses monopolization and conspiracy to restrain trade, not the specific definitions of geographic and product markets, which are understood through antitrust practices and case law. Therefore correct option is B false
Step-by-step explanation:
Businesses must indeed be concerned about market power as defined by the Sherman Act, but the statement that the Sherman Act defines market power by both geographic and product markets is false. While market power consideration involves the understanding of geographic and product markets, the Sherman Act itself does not define market power specifically through these domains. Instead, it is through case law and the practice of antitrust authorities such as the Department of Justice and the Federal Trade Commission that the importance of geographic and product markets in assessing market power is recognized. The Sherman Act's primary focus is on conduct that monopolizes or attempts to monopolize, and conspires in restraining trade, regardless of specific market definitions.
As industrialization expanded, so did the concern over the concentration of market power, which led to the creation of federal regulations like the Sherman Antitrust Act designed to promote market competition. The modern interpretation of markets has become broader due to globalization and greater competition, but this does not alleviate the need for antitrust vigilance, especially when companies may extend their monopolistic reach across borders, challenging national regulatory authorities.