WHAT IS A COMPETITIVE ECONOMY
A competitive economy is an economy where no single seller or buyer has a monopoly over the market in terms of influencing the price of the market but market price is only regulated by the forces of simple demand and supply, It should be noted that a competitive economy is usually associated with free entry and exit without any interference or protection by an state a competitive economy gives all participants a level playing ground without any unfair advantage by any party a competitive economy is efficient because firms can't make excessive profit because Competition brings down the cost of production over time which gives rise to economic stability and prosperity.
I wasn’t sure of the term before as I felt it could all be summed under competition but, it indeed exists and most importantly, it has bring in the government of a state to ensure their is a complete absence of monopoly in the production and distribution of goods and service in a nation state.
This is one means to foster creativity, efficiency in production and making products available at a more affordable price. It even creates jobs as, it leads to the creation of a research department that would understudy other closely related companies and itself through surveys in order to emerge as the best and be more productive.