CUET Economics 2025 29 May Shift 1 PYQs

If there is a positive level of output at which a firm's profit is maximized in the short run, that condition must not hold at that output level:

Choose the correct statements considering the relationship between marginal product and average product.

(A) Average product and marginal product curve are 'U'shaped.

(B) Average product and marginal product curve are inverse 'U'shaped.

(C) When the average product increases, the marginal product is greater than the average product.

(D) When the average product decreases, the marginal product is less than the average product.

Choose the correct answer from the options given below:

Which statement is incorrect in the context of relationship between AVC and SMC?