In The Wealth of Nations, Smith points out the possibility of producers contriving to raise prices. Are there other potential problems with the...

There are many possible problems with the free market
system that Smith does not point out in this book.  I will discuss two of them
here.

First, Smith does not discuss the problem of what
economists call "negative externalities."  In Smith's vision, companies compete
ruthlessly to make profits and this helps society.  However, think about what can happen
due to competition.  Companies may cut corners as they try to compete.  They might, for
example, stop disposing carefully of their hazardous waste and, instead, dump it in ways
that harm other people or the environment.  Smith does not contemplate these sorts of
harms that can come from competition.

Second, Smith does
not foresee that firms would tend to get bigger and bigger and stifle competition.  In
Smith's day, firms were small things with a few employees.  Today, there are huge firms
which do not really have much in the way of competition (think of cable companies). 
These companies are able to concentrate wealth in the hands of a few rather than
distributing it to the many in the way Smith anticipated.