Suppose you have a suit that needs altering, and you take it to three different tailors in the same mall to get an estimate of the cost of the alterations. All three tailors give you the exact same estimate of $25. Following are several statements which could explain this price similarity. One statement would be accurate if the market is competitive. One statement could be accurate if the market is not competitive. The other three statements contain errors or information which would not explain the price similarities. Place each statement in the proper category. True if the market is competitive A possibility if the market is not Inaccurate or irrelevant competitive Answer Bank The tailors are colluding to keep price above marginal cost. The tailors are colluding to keep the price above marginal revenue. The tailors are colluding to keep price below marginal cost. The marginal cost of the alteration is $25. The minimum average variable cost is $25