CUET Economics 2025 2 June Shift 1 PYQs

Keeping the capital as a fixed input, as 3, when the quantity of labor changes from 3 to 4, the total product with labor also rises from 40 to 50 units. What is the average product after the change?

1. 50
2. 13.33
3. 12.5
4. 40

Consider the production function $q = f(x_1, x_2)$ where the firm produces q amout of output $x_1$ amount of factor 1 and $x_2$ amount of factor 2. The firm decides to increase the employment level of both the factors t (t > 1). Identify the equation for decreasing returns to scale from the following.

1. $q = f(x_1, x_2)$
2. $f (tx_1, tx_2) = tf (x_1, x_2)$
3. $f (tx_1, tx_2) < tf (x_1, x_2)$
4. $f (tx_1, tx_2) > tf x_1, x_2)$

In the short run and long run, the shapes of the cost curves for a typical firm are defined as

(A). SMC curve cuts the AVC curve from below at its minimum point.

(B). LRAC curve cuts the LRMC curve from below at the minimum point of LRMC.

(C). SMC curve cuts the SAC curve from below at the minimum point of SAC.

(D). Average fixed cost curve is downward sloping.

Choose the correct answer from the options given below: