l****q
发帖数: 767 | 1 Hi Guys,
I found some questions related to CPA Becker Review - BEC CH2. They are
economics questions, and I have a hard time to think them through. Can
anyone help? Thanks in advance!
1. In long-run equilibrium, monopoly prices are set a level where:
price exceeds marginal revenue
industry demand equals industry supply
industry demand is less than industry supply
price exceeds average revenue
2. Government-mandated wage arbitration for employers can enhance efficiency
when the labor market invol | l****q
发帖数: 767 | 2 got some some help in Accounting club, but still confused regarding #5.
Her explaination is:
Average cost falls as output expands. This is the reason that there is a
natural monopoly, since the average cost decrease as output increase.
But the book (Becker CPA B2-47, 2007 edition)says, The average total cost (
ATC) curve is U-shaped. At low levels of output average total costs are high
because average fixed costs are high. As output increases, average fixed
costs fall and thus average total cost |
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