CUET Economics 2025 29 May Shift 1 PYQs

Identify the correct sequence for a firm operating in the short run.

(A) Total product increases at a decreasing rate.

(B) Marginal product becomes zero

(C) Marginal product increases

(D) More and more units of variable factor are employed.

Choose the correct answer from the options given below:

At the positive level of output, where a firm's profit is maximized, the following conditions must hold.

(A) $p = LRMC$

(B) LRMC is non-decreasing at $q_0$

(C) $p \leq LRAC$

(D) $p \geq$ min. LRAC

Choose the correct answer from the options given below:

A firm wishes to maximize its profit, find the correct conditions from the following, that must be held by the firm at q₂ at which its profit is maximum.

(A) The price must be less than the average variable cost

(B) The price must be greater than the average variable cost

(C) Marginal cost must be non-decreasing

(D) The price, p, must equal MC

Choose the correct answer from the options given below: