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 | j*********1
发帖数: 15 | 2 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
Choose the first one. You need to check Micro-economics the monopoly part.
Rule ( Under Monopoly situation):
Price > Marginal Revenue= Marginal Cost
2. Government-mandated wage arbitration for employers can enhance efficiency
when the labor market involves:
monopoly
excess seller power
p | l****q
发帖数: 767 | 3 Thank you so much!!!
But as for #5. The book (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 costs fall. However, as output continues
to increase marginal costs and average costs start to increase causing
average total costs to rise.
So, I'm confused why average cost falls as output expands under a natual
monop |
|
