How Does Free Competition Compare to Other Market Structures?
Free competition is often contrasted with other market structures:
Monopoly: A single firm dominates the market, controlling prices and excluding competitors. This leads to higher prices and reduced consumer choice. Oligopoly: A few large firms control the market, leading to potential collusion and reduced competition. Monopolistic Competition: Many firms compete, but each offers a slightly differentiated product, allowing for some degree of price control.