Final answer:
In a perfectly competitive market, producers are price takers and goods are interchangeable, like in agricultural markets where farmers sell crops at a market-set average price and cannot successfully sell for higher.
Step-by-step explanation:
A perfectly competitive market is characterized by many producers selling highly similar goods, with easy entry and exit in the market, and producers acting as price takers. Agricultural markets often exemplify a near-perfect competitive market environment.
For instance, crops like corn are largely interchangeable, with farmers receiving an average price set by the market. In 2015, U.S. corn farmers received an average of $6.00 per bushel. A farmer attempting to sell at $7.00 per bushel would be unsuccessful, as buyers could easily turn to other sellers offering the market price.
Conversely, there is no incentive to sell below the equilibrium market price either. Small roadside produce markets and small organic farmers are additional examples where markets operate in close proximity to perfect competition.