1. The rule of consumer sovereignty apply in this type of market system.
2. It encourage foreign investment which improves the balance of payment.
3. Consumers have variety of goods and services to choose from and due to competition there is continued improvement of these goods.
4. In free market people are encouraged to work hard and this contributes to technology innovation which leads to economic growth.
5. It leads to improvement and efficiency of firms and this is because those firms which produce goods at low cost which consumer don't want they are forced to exit the market.
Jonmhumble answered the question on October 22, 2017 at 17:59
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