On the margin, that is true. But it also needs a situation where there are many competitors in any market, where consumers will choose only the best product at the best price instead of paying attention to politics/religion/location/etc, where switching costs are low and where the consumers can accurately determine quality in the first place.
The free market is an interesting idea, but it assumes many preconditions that are not always true in practice. It's an approximation at best.
The free market is an interesting idea, but it assumes many preconditions that are not always true in practice. It's an approximation at best.