Competition In A Free Market Economy

Another economist that advocated for a free market economy was Adam Smith, who through his most influential book titled “The Wealth of Nations” published in 1776, stated that competition alone would ensure that consumers received the best products at the best prices. According to Smith, any seller who charges more for products than others won’t find customers, or the job seeker asking for higher wages than expected won’t get hired due to competition that would make the market to work effectively without any need for price or wage regulations. Competition determines goods and services to be produced, the way they are being produced, and for whom.
It is agreeable that during the great recession of 2007-2009, there were increasing disillusionment

At the end, it is agreeable that within a free market system, the benefits have increasingly become evident and

Therefore, both producers and consumers have freedom to choose what to produce and what to consume, but production and consumption of harmful goods might be stopped by the government. The more the company produces of a few products or services the less it could create and produce different goods and services. It is evident that because of scarcity of resources – to produce one certain product, one has to forgo another product to incur opportunity cost. It is clear that company choose to produce product or service that brings the highest benefits relative to costs. Nevertheless, with growth and increases in choices the question of what to produce becomes difficult to answer. Namibia is gifted with a lot of natural resources, making it an essential exporter of diamonds, uranium, copper, fish and fish products, beef, grapes and benefits immensely from its tourism industry. In all these major industries, the public-private partnership is highly encouraged (Shilimela, R., 2006). However, the government intervenes to prevent excessive concentration of economic power, and monopolistic and restrictive trade practices (Schmitz, A.,