Does a perfectly competitive producer have any incentive to undercut the current market price? Explain your answer

What will be an ideal response?

A perfectly competitive producer has no incentive to undercut the market price because the producer can sell all he or she produces at the going market price. In this case, a producer will not lower the price he or she charges because no additional sales can be garnered. Hence it is nonsensical to undercut the market price because the lower price means lower revenue and hence lower profit.