• The quality of goods often suffers.

In a free-enterprise system, businesses often compete to attract customers by offering lower prices or introducing new products. However, this competition can sometimes lead to a downside where companies prioritize cost-cutting measures over quality.

For example, to maintain low prices, businesses may reduce production costs by using cheaper materials or processes, which can result in goods that are less durable or reliable.

While competition generally benefits consumers by fostering innovation and reducing prices, it can also create situations where the focus on affordability undermines the quality of the products being offered.