CUET Economics - Identify the incorrect option from the following related to a perfectly competitive market. | PYQs + Solutions

CUET Economics 2025 29 May Shift 2

Micro

Medium

The firm's average revenue is equal to the market Price.

The price line shows the relationship between the market price and a firm's output level.

Marginal revenue equals the market price.

Firm's total revenue curve is a straight line horizontally.

✅ Correct Option: 4

Related questions:

3 June Shift 1

In the context of perfect competition, which one of the following is not correct?

3 June Shift 1

Which of the following is true about the relationship between Total Revenue (TR) and Marginal Revenue (MR) in a perfectly competitive market?

(A) Total Revenue will increase at a constant rate.

(B) Marginal Revenue is more than Average Revenue.

(D) Marginal Revenue is equal to Average Revenue.

Choose the correct answer from the options given b-elow:

14 May Shift 1

Under perfect competition if firms earn supernormal profits. Arrange following statements to arrive at the implication of free entry and exit of firms

(A) Market price fall in such a manner that firms will be earning normal profits only and thus no more firms will have incentive to enter the market.

(B) Some new firms will enter the market

(D) Demand remains unchanged but the market supply curve shifts rightward

CUET Economics 2025 29 May Shift 2 PYQs

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