CUET Economics 2025 27 May Shift 2 PYQs

If there is a positive level of output at which a firm's profit is maximized in the long run, three conditions must hold at that output level are:

A. P is equal to LRMC

B. P is less than LRAC

C. LRMC is non - decreasing

D. P is greater than or equal to the minimum LRAC

Choose the correct answer from the options given below:

Arrange the following money supply measures in chronological order.

(A) Excess supply will prevail in the economy.

(B) The tendency of prices to change to restore equilibrium.

(C) Suppose market supply is greater than market demand at a given price.

(D) Hence, the market is not in equilibrium.

Choose the correct answer from the options given below:

Identify the correct sequence due to which firms under perfect competition earn normal profits in the long run.

(A) The firms are earning less than normal profit at the prevailing price.

(B) The profits of each firm will increase to the level of normal profit.

(C) No more firm will want to leave, since they will be earning normal profit here.

(D) Some firms will exit, which will lead to an increase in price.

Choose the correct answer from the options given below: