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

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.