A competitive market is a type of economic system where businesses compete against each other to provide goods and services to consumers. In this type of market, there are many buyers and sellers who offer similar products or services, which creates an environment where companies must differentiate themselves through price, quality, innovation, or customer service in order to gain a competitive advantage over their rivals. The presence of multiple firms vying for the same customers drives down prices and encourages businesses to be efficient and effective in meeting consumer needs. Competition can also lead to lower prices, higher quality products, and greater choices for consumers.