Final answer:
The Sherman Antitrust Act prohibits businesses from engaging in anticompetitive practices such as fixing prices and establishing monopolies. The Federal Trade Commission and the U.S. Department of Justice enforce these laws to ensure a competitive marketplace.
Step-by-step explanation:
The Sherman Antitrust Act is central to U.S. antitrust law and aims to prohibit anticompetitive practices by businesses. This act addresses various forms of business conduct that restrict fair competition. It specifically targets activities such as collusions between competitors, which are considered illegal. According to the act, businesses are prohibited from joining together to:
- Fix prices and rig bids
- Establish monopolies
These actions are seen as forms of cartel behavior, which can lead to reduced competition in the marketplace, harming consumers by limiting choice and driving up prices. The Federal Trade Commission and the U.S. Department of Justice enforce these laws to maintain a competitive environment that promotes consumer welfare and economic efficiency.