Free market, what kind of competition it establishes and is it efficient?

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Makashima
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Within the free market, the price equilibrium is established solely by demand and supply thus is this efficient?

I thought maybe perfect competition but apparently it can be monopoly, natural monopoly. But doesn't free market exclude that

Maybe not if you talk about the negative externalities i.e MSC>MPC thus
MSC>P hence not allocative efficient

Also can we talk about natural monopoly or does free market also exclude that

How about productive efficiency?
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TSRforum
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You want the keynesian, monetarist or austrian view?
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Makashima
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(Original post by TSRforum)
You want the keynesian, monetarist or austrian view?
What are those, sorry
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apple112
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The degree of competition in a market would depend on the barriers of entry/exit and nature of good.

Whether, the price equilibrium in a free market, is efficient would be determined if it fulfills the definition of allocative and productive efficiency respectively.

Allocative efficiency- optimal distribution of goods and services, taking into account the consumer's preferences. (P=MC)

Productive efficiency- producing goods and services with the optimal combination of inputs to produce maximum output with minimum cost.
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