Since there is little or no government influences in free market economy, firms are able to sell anything they want but it is mainly productions of customer’s want. It’ll be a free enterprise so no dictatorship telling labours where they have to work, labours can take any job they want. Also with no barriers to entry or exit it is easy for competition to enter the market and it will be a highly competitive market. Consumers will be looking for which firm can offer them the best deal on their wants whereas firms will be competing for customers and suppliers. Firms may have to give more to the suppliers in order to get them attracted to the firm and decrease price in order to attract consumers. Having competition it may be beneficial to a firm as they may be able to get ideas from a rival firm and yet do better than them.
“Consider Microsoft's standard practice of absorbing any new and interesting technology into their operating system. In DOS 6 it was disk compression. In Windows 3.11 it was network file access. In Windows 98 the target was the web browser. In Windows XP it may well be streaming multimedia. It's very hard to exist in a marketplace when one of your competitors is more or less giving away your product for free, and thus companies like Stac, Novell, and Netscape have been driven into relative obscurity. They may