Final answer:
The Sherman Act addresses activities that substantially affect interstate commerce and aims to prevent monopolization and anticompetitive practices to promote fair competition. Enforced by the Federal Trade Commission and the Department of Justice, it prohibits cartels, price-fixing, bid-rigging, and other market-dividing agreements.
Step-by-step explanation:
To fall under the Sherman Act, an activity must substantially affect interstate commerce, involve monopolization, or promote competition. Specifically, the Sherman Antitrust Act of 1890 made it illegal to monopolize or attempt to monopolize, and conspire in restraining commerce. This law aimed to prevent anticompetitive practices such as forming cartels, price-fixing, and bid-rigging, and granted regulatory powers to the United States government to break up corporations engaged in such practices. The Act's purpose was to promote fair competition and prevent monopolies or trusts from interfering with the free market, particularly in interstate commerce. The Federal Trade Commission and the U.S. Department of Justice are authorized to enforce these laws, prohibiting firms from engaging in anticompetitive agreements or activities that would harm the competitive landscape. Actions like division of markets, fixing prices, or output decisions that mimic monopoly power are illegal under U.S. antitrust laws.