1.   Free Market equilibrium leads to too few improvements.

2.   Free Market equilibrium occurs at E.

3.   Free Market equilibrium will not equate Marginal cost and Marginal benefit and there will be scope for Pareto gains.

4.   Free Market equilibrium will not generally be efficient.

5.   Imperfectly competitive industries are a source of Market failure because free Market equilibrium is no longer Pareto-efficient.

6.   Perfectly competitive free Market equilibrium will then allocate resources efficiently.