52.3k views
2 votes
What does the government do to protect competition in a free-market system? Explain why the government needs to take these actions.

1 Answer

4 votes

Answer:

Congress and each administration work together to pass and enforce legislation that guarantees free competition, regulates different aspects of business operations and services, and makes sure that large corporations don´t block or suffocate other competitors in the market (anti-trust laws). A free-market economy relies on competition by private companies and entrepreneurship, but there are situations in which some big corporations occupy a dominant position, have the largest market share, and try to eliminate weaker competitors. That´s why anti-trust laws and other regulations are necessary.

Step-by-step explanation:

User Petri Lehtinen
by
3.9k points