The primary purpose of antitrust legislation is to a. protect small businesses. b. protect the competitiveness of U.S. markets. c. protect the prices of American-made products. d. ensure firms earn only a fair profit.

Antitrust legislation emerged in the late 19th century during the rise of monopolies and trusts, which stifled competition and led to unfair pricing and exploitation. The Sherman Act of 1890 was the first federal legislation to outlaw monopolistic companies, promoting a fair market environment where competition flourishes. This laid the groundwork for a series of laws aimed at maintaining consumer welfare and promoting economic growth. In today’s world, antitrust laws ensure that consumers benefit from healthy competition, which means lower prices, better products, and more innovation. Companies like Google and Facebook have recently faced scrutiny under these laws to prevent them from stifling competition and to promote a level playing field in the tech industry. This keeps the market dynamic and encourages new startups to thrive!