Abstract
Free market system in the Liberal Economic paradigm means that when each individual acts in his or her self-interest , the welfare of society is automatically assured. This is so called " invisible hand " of Adam Smith which insures the social welfare , even though individuals seek their own interests . In order to have such a system , one has to assume : 1- large number of firms which produce homegenous products , 2- free entry and exit i n the markets . Yet , these assumptions also mean that there would be no " economic power " of any individual actors . The reason is obvious : the first assumption implies that no firm has any power to influence the market conditions in which it operates , the second , if any one of them got such power , it can not carry out too long because of competit i on which comes from new firms entering freely into the market. Therefore , i n order to teor i ze an " ideal" economic system , the Liberal paradigm tries to exclude the " economic power " from the economic analyses and many unsettled discussions in today ' s economic issues are in someway related to this effort.
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