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CUET Economics 2025 PYQs30 May Shift 1. Free, no login required.

Micro

past year questions, CUET Economics 2025 30 May Shift 1

Forms of Market

past year questions, Micro, CUET Economics 2025 30 May Shift 1

Medium

Which of the following are features of a perfect competitive market?

(A) Free entry and exit of firms.

(B) Huge selling cost.

(C) perfectly elastic demand curve.

(D) perfect market knowledge among buyers.

Choose the correct answer from the options given below:

Solution

✅ Correct Option: 3

Option 1 -> Includes (B) which is incorrect as perfect competition has minimal selling costs, not huge ones.

Option 2 -> Includes (B) which is incorrect, and excludes (A) which is a fundamental feature of perfect competition.

Option 3 -> Correctly identifies (A), (C), and (D) as features of perfect competition while excluding (B).

Option 4 -> Incorrectly includes (B) which contradicts perfect competition principles.

Hence, Option 3: (A), (C) and (D) only -> In a perfectly competitive market, firms can freely enter and exit without barriers (A), each firm faces a perfectly elastic demand curve as they are price takers (C), and there is perfect information available to all market participants (D). However, huge selling costs (B) are NOT a feature of perfect competition - in fact, selling costs are minimal or zero because products are homogeneous and no advertising is needed. Selling costs are typically associated with monopolistic competition or oligopoly where firms try to differentiate their products -> correct

Related questions:

2025: 28 May Shift 2

When Government fix the minimum price of any commodity this move of government is known by:

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: 29 May Shift 1

Arrange the following steps of Market Equilibrium under perfect competition in the correct order.

(A) Excess of market demand over market supply will cause excess demand situation.

(B) Quantity demanded will fall and quantity supplied will rise.

(C) The market will move towards the point where the quantity that the firm wants to sell is equal to the quantity that the consumer wants to buy.

(D) The market price would tend to increase, due to competition among buyers.

Choose the correct answer from the options given below:

2026: 21 May Shift 2

Match the LIST-I with LIST-II

(SMC = Short run marginal cost, AVC = Average variable Cost, MR= Marginal Revenue)

LIST-ILIST-II
A.Perfectly competitive MarketI.Normal profit in the long run
B.Point below where SMC curve cuts the AVC curveII.Break Even Point
C.Supply curve cuts the SMC curve at minimumIII.Shut Down Point
D.MR is precisely the market priceIV.Perfect Competition

Choose the correct answer from the options given below:

2025: 16 May Shift 1

Match List-I with List-II

List-IList-II
(A) Excess demand(I) Supernormal profits
(B) Excess supply(II) Perfect competition
(C) Entry of new firms in the market(III) Price tends to fall
(D) Price taker(IV) Price tends to rise

Choose the correct answer from the options given below:

2026: 13 May Shift 2

Match List-I with List-II

List-IList-II
(A) Price-takers(I) Break-even point.
(B) Price less than minimum point of AVC curve(II) Normal profit.
(C) A firm earns normal profit(III) Perfectly Competitive Market.
(D) A firm covers the explicit costs and opportunity costs(IV) Shut down point.

Choose the correct answer from the options given below:

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