What percentage of U.S. cigarette production did the American Tobacco Company control before being broken up?

• A. 50%
• B. 75%
• C. 90%
• D. 100%

Answer: (C)

The American Tobacco Company held a staggering 90% of U.S. cigarette production before it was broken up. This level of control was due to a series of mergers and acquisitions that enabled the company to dominate the industry. The sheer volume of their market share significantly restricted competition, leading to concerns about monopolistic practices which ultimately resulted in antitrust actions against the company.

This high percentage illustrates the degree to which American Tobacco Company was able to influence cigarette prices, availability, and marketing practices across the country. The breakup in 1911 was a landmark case in antitrust law, aimed at promoting fair competition for the benefit of consumers and preventing any single entity from monopolizing the market.