Monopolies can also benefit from economies of scale. This is because they have an increased output which allows for a decrease in the average costs of production. This decreased cost could potentially result in lowered prices for consumers.

Monopolies can make abnormal profits which can be used to better the quality of the products that they manufacture. This could lead to reduced prices in the long term and improved products.

Oligopoly markets give you a variety of different options, allowing for customers to have a choice due to the different brands that oligopoly markets offer.

Due to the pressure of competition, companies are forced to find cheaper ways of producing their products which leads to exploitation of workers. For example, GAP was recently accused of using child laborers in South East Asian countries for the production of their clothing.

Free markets promote growth and sustain the advantages of a capitalist economy. The majority of profitable industries and businesses are left to private companies, which means that they are fueled by competition. Competition creates a variety of beneficial factors including lower prices for goods and services, increased quality of products, a wider range of choice, higher innovation and greater efficiency. All of these factors are favorable towards the economy.

The potential dangers of a free market economy could be detrimental. Governments should be able to interfere in order to aid and protect the economy. The prevention of the detrimental effects of a free market economy could include the prohibition of exorbitant prices, irrational taxation, risky mergers and good that that have negative effects on the society or environment. In addition, the government should also have the power to protect the rights of the people to avoid exploitation.