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
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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