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CUET Economics 2025 PYQs29 May Shift 1. Free, no login required.

Micro

past year questions, CUET Economics 2025 29 May Shift 1

Forms of Market

past year questions, Micro, CUET Economics 2025 29 May Shift 1

Medium

Which of the following are features of the perfect competition market?

(A) Price taking behavior of firms.

(B) Restriction on entry and exit of firms.

(C) Large number of sellers and buyers.

(D) Asymmetric Information.

Choose the correct answer from the options given below:

Solution

✅ Correct Option: 3

Option 1 -> Incorrect because (B) Restriction on entry/exit and (D) Asymmetric information are NOT features of perfect competition.

Option 2 -> Incorrect because (B) Restriction on entry/exit is NOT a feature of perfect competition; instead, free entry and exit is required.

Option 3 -> (A) Price taking behavior and (C) Large number of sellers and buyers are the correct features of perfect competition.

Option 4 -> Incorrect because (B) is not a feature of perfect competition, and it excludes (A) which is a key characteristic.

Hence, Option 3: (A) and (C) only -> Perfect competition is characterized by: (A) Price-taking behavior where firms accept market price as they cannot influence it individually, and (C) Large number of buyers and sellers ensuring no single entity has market power. Note that perfect competition requires FREE entry and exit (not restrictions), and PERFECT information (not asymmetric information). These two features (A) and (C) along with homogeneous products, perfect information, and free entry/exit form the complete set of perfect competition assumptions. -> correct

Related questions:

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What is the shape of Average Revenue (AR) curve under perfect competition?

2025: 28 May Shift 1

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.

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2026: 13 May Shift 2

Suppose the market for cricket balls is perfectly competitive. When the price of a cricket ball is Rs 20, let us assume that 400 cricket balls are supplied by the firms in the market. When the price of a cricket ball rises to Rs 60, let us assume that 2,000 cricket balls are supplied in aggregate by the firms in the market. What will be the value of price elasticity of supply?

2025: 31 May Shift 1

Select the INCORRECT feature of the market with respect to perfect competition.

  1. The market consists of a large number of buyers and sellers.
  2. Entry into the market as well as exit from the market are free for firms.
  3. Buyers are price makers.
  4. There is perfect knowledge.

2025: 22 May Shift 1

Let us consider the example of a market consisting of identical farms producing the same quality of wheat. Suppose the market demand curve and the market supply curve for wheat are given by: qᵈ = 200 - p and qˢ = 120 + p. What is the equilibrium price?

2025: 29 May Shift 2

In a perfectly competitive market choose the correct statement from the following.

(A) Equilibrium occurs where market demand equals market supply.

(B) Each firm employs labour upto the point where the marginal revenue of labour equals the wage rate.

(C) Equilibrium price and quantity are determined when there is large number of firms.

(D) Equilibrium price is always equal to minimum average cost of the firms.

Choose the correct answer from the options given below:

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