Perfect Free Markets Are Bad: Long term investment is impossible

The argument:

In a perfect free market, noncompetitive firms are instantly replaced. Thus, firms cannot make long term investments. The overwhelming majority of investment in tomorrow have a cost that must be paid today. That cost must be paid for somehow, usually through price increases. This is impossible. In perfect markets, no consumer will buy a product which has indistinguishable perfect substitutes for a lower price.

The Flaw:

There are other forms of funding. Investment by outside parties in exchange for a proportion of the returns is one. Debt with delayed repayments is another.