Imagine a scenario where a group of small tech startups in a city band together to form a cooperative to share resources and reduce costs. They believe this will help them compete against larger corporations. How might the Sherman Antitrust Act apply to their actions?

The Sherman Antitrust Act says that any agreement that limits competition or fixes prices is illegal. If the startups form a cooperative that only shares equipment, marketing tools, or office space, and they still compete for customers, that is usually allowed because they are not setting prices or limiting supply. However, if the cooperative secretly agrees to raise prices, divide markets, or cut out other competitors, that would be a conspiracy to restrain trade and would violate the Act. For instance, if the startups promise never to compete with each other for a particular city area, that would be illegal. So the key is whether their cooperation actually reduces competition or just saves money while still competing.