Question

What is a specific, "real-life" example of a seller in the world today that meets the definition of a price taker?

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Answer 1

A price taker market for goods and services is one, wherein as a producer you have no free choice to price the good which you produce, but rather you need to accept the rate at which it is selling in the market place, and sell the product at a rate which is acceptable to the market to allow for sales to take place.

The competition in these market types is at its peak and you have to operate at low profit margins. If you charge higher than the existing market price, the customers are well aware of the product and would not want to purchase the products from you as there is no significant differences in the product being sold and the market is full of products which you are trying to sell.

For example, this can be found in the market for agricultural goods. If you are a wheat seller in the market place, you need to accept the price which the market is ready to pay currently. There are numerous wheat sellers which are plying at the same prices and there is no difference in produced wheat which may attract a higher price in the market place. The same is also true for other vegetables and fruits that may sell in this very market place.

The phenomenon of being a price taker takes place, primarily due to the fact that the market place has the existence of such goods and services, which cannot be differed from one another and are identical in their benefits which they provide to the consumer, such that a single producer cannot regulate the prices of these commodities respectively.