The optimum output will be when the relationship between LRMC and LRAC. Option 1: LRAC cut LRMC from above at the minimum point LRAC. Option 2: LRAC cut LRMC from below at the minimum point LRAC. Option 3: LRMC cut LRAC from above at the minimum point LRAC. Option 4: LRMC cut LRAC from below at the minimum point of LRAC.

The answer is 'LRMC cut LRAC from below at the minimum point of LRAC.'. View full solution:

CUET Economics - The optimum output will be when the relationship between LRMC and LRAC. | PYQs + Solutions

CUET Economics 2025 30 May Shift 2

Micro

Medium

LRAC cut LRMC from above at the minimum point LRAC.

LRAC cut LRMC from below at the minimum point LRAC.

LRMC cut LRAC from above at the minimum point LRAC.

LRMC cut LRAC from below at the minimum point of LRAC.

✅ Correct Option: 4

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29 May Shift 2

Choose the correct equations in the context of costs.

(A) TFC = AFC × quantity

(B) LRMC = (TC at $q_n$ units) – (TC at $q_{n-1}$ units)

(D) LRAC = TC/q

Choose the correct answer from the options given below:

15 May Shift 1

Consider a production function $q = f (x_1, x_2)$ where the firm produces q amount of output using $x_1$ amount of factor 1 and $x_2$ amount of factor 2. Now suppose the firm decides to increase the employment level of both the factors t (t > 1) times.

Identify the correct statement from the following.

3 June Shift 1

Chronologically, arrange the following statements in the context of shape of AP curve.

(A) MP starts falling, the AP continues to rise as long as MP remains higher than AP.

(B) At the first level of output, the MP and the AP are the same.

(D) MP rises, AP being the average of marginal products, also rises, but rises less than MP.

Choose the correct answer from the options given below:

CUET Economics 2025 30 May Shift 2 PYQs

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