Supply and Demand determine prices; Economy remains in Equilibrium
Laissez-fare capitalism does not work. Minimal government intervention in the economy is good, but none is horrible. The government does need to intervene in the economy in rare cases. For example, if a monopoly were to develop in this total free market and dominate all of its competitors, consumers would have no choice who they wanted to buy from. This would give company a lot of power over the country and they would be able to set prices at will. In these cases in a normal free market society, the government intervenes and breaks the monopoly into smaller companies.
There is no invisible hand to regulate the economy in a capitalist economy because the power relation of wealth to power creates the dystopian economy of institutional inequality and oppression under the capitalist regime. There is no freedom under capitalist asides from the freedom to oppress and be oppressed.
It is very efficient for creating short-term economic development (look at Deng Xiaoping's reform of China as an example) However it is a terrible system when it comes to long term prosperity of the rest of the population as Capitalism by nature creates great economic disparity.