Micro

Production & Costs

Easy

The difference between the revenue and cost is known as________

Cost of Production

Input cost

Marginal Cost

Profit

✅ Correct Option: 4

Option 1 -> Refers to the total expenses incurred in producing goods or services.

Option 2 -> Represents the cost of raw materials and resources used in production.

Option 3 -> The additional cost incurred when producing one more unit of output.

Option 4 -> The financial gain calculated as total revenue minus total costs.

Hence, Option 4: Profit -> Profit is the fundamental measure of business performance, calculated by subtracting total costs from total revenue (Profit = Revenue - Cost). When revenue exceeds costs, the business earns a positive profit; when costs exceed revenue, it incurs a loss. This metric helps businesses evaluate their financial success and make strategic decisions. -> correct

2025: 30 May Shift 2

The equation of long-run marginal cost.

2025: 15 May Shift 1

Match List-I with List-II (TP : TOTAL PRODUCT; L: UNITS OF LABOUR)

List-I	List-II
(A) $TP/L$	(I) Total Product is maximum
(B) $\Delta TP/\Delta L$	(II) Marginal product
(C) $\sum MP$	(III) Total product
(D) $MP=0$	(IV) Average Product

Choose the correct answer from the options given below:

2025: 16 May Shift 1

If the marginal cost(MC) of a perfectly competitive firm is as given below and the price of the product is Rs 15, find the profit-maximizing output of the firm.

output	1	2	3	4	5	6
MC	18	15	10	12	15	24

2025: 22 May Shift 2

Marginal product (MP) and the average product (AP) curves are inverse 'U'-shaped. which of the following is correct for AP and MP.

2025: 31 May Shift 1

Suppose in a production process, all inputs get doubled. As a result, if the output gets doubled, the production function exhibits?

Decreasing Return to scale.
Incresing Returns to scale.
Constant Return to scale.
Decresing Productivity.

2025: 21 May Shift 1

Which of the following is/are true about the short run costs?

(A) Marginal cost is the slope of total variable cost.

(B) Average fixed cost curve is a downward sloping rectangular hyperbola.

(D) Average variable cost curve and average cost curve are parallel to each other.

Choose the correct answer from the options given below:

The difference between the revenue and cost is known as________

Solution

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CUET Economics Past Year Questions (Topic-Wise)