CUET Economics 2025 30 May Shift 1 PYQs

Select the INCORRECT condition for profit maximisation in the perfect market.

1. The price must equal to MC.
2. Marginal cost must be non-decreasing.
3. Price must be less than the average cost.
4. Price must be greater than the average cost.

The case where a marginal product is greater than the average product, where?

1. MP cut AP at Minimum
2. AP remains Constant
3. AP Decreases
4. AP Increases

When some resources are shifted from Use 1 to Use 2 (given technology), the Marginal Rate of Transformation will