[vikramkr]

Right, and in addition free markets != anything seen in reality. There's no such thing as perfect competition or a real life free market since the textbook definition of a free market requires both no monopoly power and no government intervention. Basically none of your nice econ 101 graphs of perfect competition and everything apply in any sort of meaningful way because of all the absurd assumptions necessary to make them work. If there are two bakers that are producing identical bread in every way, they still wont be in perfect competition since one of them will be physically closer to you which makes for decreased travel time.