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It can be both at the same time.

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It can, but state have major responsibility.

If state get out of businesses the open market will work but supply and demand, and the best products at the best prices win.

But with the intervention of state f*cked the open market.

Very true. I would recommend one reads atlas shrugged by Ayn Rand or The Road to Serfdom by Friedrich Hayek for how government intervention actually works and the results.