The "invisible hand of the free market" works only, if you have many market participants competing one against another. When a participant wins the competition you get monopoly, when multiple participants collude you get oligopoly, or cartel. Market can not solve this.
Yes, which means that we can easily see that capitalism does not optimize for a better world or a more practical market or a better product, but instead optimizes for extracting the maximum wealth possible from the market and consolidating it as much as possible.