CUET Economics - Which statement is incorrect in the context of relationship between AVC and SMC? | PYQs + Solutions

CUET Economics 2025 29 May Shift 2

Micro

Medium

As long as AVC is falling, SMC must be less than the AVC.

SMC curve cuts the AVC curve from below at the minimum point of AVC.

As AVC rises, SMC must be greater than the AVC.

SMC curve cuts the AVC curve from below at the minimum point of SMC.

✅ Correct Option: 4

Related questions:

3 June Shift 2

Match List-I with List-II

List-I	List-II
(A) Total revenue	(I) Minimum of LRAC curve.
(B) Supply	(II) A firm earns only normal profit.
(C) Shut down point	(III) Market price multiplied by the firm's output.
(D) Break-even point	(IV) Quantity sold at a given price.

Choose the correct answer from the options given below:

3 June Shift 2

In the short run, the shape of the average fixed cost curve for a typical firm is?

30 May Shift 2

The optimum output will be when the relationship between LRMC and LRAC.

CUET Economics 2025 29 May Shift 2 PYQs