What is a free market system?

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Reference no: EM13840864

1. What is a free market system? What are the basic assumptions that a free market system is based on? What are the erroneous assumptions that the free market is based on? Why are they thought to be erroneous?


2. Explain how the Pareto-efficient allocation of goods also maximizes social surplus. Please provide at least one example to justify your response.

Reference no: EM13840864

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