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Thursday, August 08, 2013 6:10:04 PM
A free market is a market structure in which the distribution and costs of goods and services, along with the structure and hierarchy between capital and consumer goods, are coordinated by supply and demand unhindered by external regulation or control by government or monopolies.[1] A free market contrasts with a controlled market or regulated market, in which government policy intervenes in the setting of prices. An economy composed entirely of free markets is referred to as a free-market economy.
Although free markets are commonly associated with capitalism in contemporary usage and popular culture, markets have been also advocated by socialists and have been included in various different proposals for market socialism, co-op businesses, and profit sharing.
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