Assume that the clothing (c.market is a monopoly but perfect competition prevails in the market for food (F).Which of the following is true in this context?

Question

Quizplus · Accepted Answer

In a monopoly market, the monopolist tends to produce at a lower quantity and higher price than perfect competition. Therefore, the marginal cost of producing clothing would be higher than the marginal cost of producing food in a perfect competition market. As a result, the price ratio of clothing and food in a monopoly market would be greater than the ratio of their marginal costs.

Assume That the Clothing (C