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According to general equilibrium economics, a free market is an efficient way to distribute goods and services, while a monopoly is inefficient. The inefficier distribution of goods and services s, by definition, a market failure. In a free market, the prices of goods and services are determined by free and open competition between companies and individuals. Producers increase or decrease production and alter their products according to consumer demand while consumers vote with their money, forcing producers to adapt to their needs and desires. KEY TAKEAWAYS « Some modern economists argue that amonopoly is by definition an inefficient way to distribute goods and services. « This theory suggests that it obstructs the equilibrium between producer and consumer, leading to shortages and high prices. « ***Other economists argue that only government monopolies cause market failure*** - (crossed out "Government" with red arrow to text these economists are of sh*t! )