Competitive Market

A competitive market is a marketplace where many buyers and sellers operate freely, with no single entity dominating. In this environment, goods and services are similar, and prices are determined by supply and demand. Because of the competition, businesses strive to improve quality and reduce prices to attract customers. This process encourages efficiency and innovation. Examples include farmers' markets or online marketplaces where numerous participants trade similar products. The key features are ease of entry for new firms, transparent pricing, and a high level of competition that benefits consumers through better choices and fair prices.