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CUET Economics 2025 PYQs2 June Shift 1. Free, no login required.

Micro

past year questions, CUET Economics 2025 2 June Shift 1

Production & Costs

past year questions, Micro, CUET Economics 2025 2 June Shift 1

Medium

When Marginal Product is constant?

Solution

✅ Correct Option: 3

Option 1 -> If TP is constant, MP would be zero (no additional output), not constant.

Option 2 -> If TP is zero, there's no production and MP would also be zero or undefined.

Option 3 -> When MP is constant, each additional unit of input adds the same amount to output, making TP increase linearly.

Option 4 -> If TP decreases at constant rate, MP would be constant but negative, which is unusual in production theory.

Hence, Option 3: Total Product is increasing at a constant rate -> Marginal Product represents the rate of change of Total Product. When MP is constant (say 5 units), each additional input adds exactly 5 units to TP. This creates a linear relationship where TP increases steadily. For example, if MP = 5, then TP might be 5, 10, 15, 20... showing a constant increase of 5 units. Mathematically, if MP = dTP/dL = k (constant), then TP = kL + c, which is a linear function indicating constant rate of increase. -> correct

Related questions:

2025: 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.

(C) MP fall sufficiently, its value becomes less than the AP and the AP also falls.

(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:

2025: 30 May Shift 2

As long as decreasing returns to scale operates, as the firm increases output, the average cost must be ................

2025: 15 May Shift 1

Choose the correct options with reference to short-run average costs.

(A) Average total cost = total cost / quantity of output

(B) Average total cost = average variable cost + average fixed cost

(C) Average variable cost = average total cost - average fixed cost

(D) Average fixed cost = average variable cost - average cost

Choose the correct answer from the options given below:

2025: 30 May Shift 1

What is the fixed cost for producing 200 vases?

2025: 30 May Shift 2

The collection of all possible combinations of goods and services that can be produced from a given amount of resources and a given stock of technological knowledge.

2025: 3 June Shift 1

Match List-I with List-II

List-IList-II
(A) The minimum level of profit that is needed to keep a firm in the existing business.(I) Super-normal profit
(B) Profit that a firm earns over and above the normal profit.(II) Loss
(C) AR < AC(III) Break even point
(D) The point of minimum average cost at which the supply curve cuts the AC curve.(IV) Normal Profit

Choose the correct answer from the options given below:

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