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

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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