Section 1 of the Sherman Antitrust Act makes it illegal to

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Section 1 of the Sherman Antitrust Act prohibits any agreements, contracts, or conspiracies that restrain trade, which means any action that limits competition in the market. It is aimed to promote fair competition and prevent the formation of monopolies, which can harm consumers by limiting choices and raising prices. The other options, like forming a monopolistically competitive firm or having an oligopoly, are not necessarily illegal, but they may be scrutinized by antitrust authorities if they lead to anticompetitive behavior. Price discrimination, on the other hand, is not necessarily frowned upon by the government as it can lead to price efficiencies and potentially lower consumer prices.

Section 1 of the Sherman Antitrust Act Makes It Illegal