Final answer:
The free market concept involves aligning the interests of the group leader and members with market forces of supply and demand, minimizing government intervention, and maintaining economic freedom through voluntary exchanges under rule of law.
Step-by-step explanation:
The free market concept incorporates activities that are of interest or enjoyment to both the group leader and the group members, and ideally, others as well. This alignment with personal and collective interests is central to the effective functioning of a free market system. The theory of free-market economics suggests that market forces should ideally regulate the production and consumption of goods and services, promoting efficiency and economic freedom.
In a free market, the interplay of supply and demand determines the allocation of resources, with minimal governmental interference. For a market to function efficiently, several conditions must be met including adequate competition, well-informed buyers and sellers, mobility of resources, and prices that reflect production costs. The presence of private goods, which are goods that can be consumed by individuals without others benefiting from them, is crucial for a market's operation. These private goods contrast with public goods, which are resources that benefit everyone and cannot be withheld from anyone.