Micro

Forms of Market

Medium

Match List-I with List-II

List-I List-II
(A) Perfect Competition (I) A typical characteristic of perfect competition.
(B) Perfectly elastic demand curve (II) An individual firm is a price taker.
(C) Degree of price control under perfect competition (III) The firm can sell any amount of its output at the prevailing price.
(D) Freedom of entry and exit (IV) No control over price.

Choose the correct answer from the options given below:

List-I	List-II
(A) Perfect Competition	(I) A typical characteristic of perfect competition.
(B) Perfectly elastic demand curve	(II) An individual firm is a price taker.
(C) Degree of price control under perfect competition	(III) The firm can sell any amount of its output at the prevailing price.
(D) Freedom of entry and exit	(IV) No control over price.

(A) - (IV), (B) - (I), (C) - (II), (D) - (III)

(A) - (IV), (B) - (II), (C) - (III), (D) - (I)

(A) - (II), (B) - (IV), (C) - (I), (D) - (III)

(A) - (II), (B) - (III), (C) - (IV), (D) - (I)

✅ Correct Option: 4

Option 4: (A) - (II), (B) - (III), (C) - (IV), (D) - (I) -> Let's match each item correctly:

(A) Perfect Competition → (II) An individual firm is a price taker: Under perfect competition, no single firm has market power to influence price. Each firm accepts the market-determined price and is therefore a price taker.

(B) Perfectly elastic demand curve → (III) The firm can sell any amount of its output at the prevailing price: A perfectly elastic demand curve is horizontal, meaning at the market price, the firm can sell any quantity. Any attempt to raise price results in zero sales.

(C) Degree of price control under perfect competition → (IV) No control over price: Firms in perfect competition are price takers with zero pricing power. They must accept the market price determined by industry supply and demand.

(D) Freedom of entry and exit → (I) A typical characteristic of perfect competition: One of the fundamental assumptions of perfect competition is that there are no barriers to entry or exit, allowing firms to freely enter profitable markets or exit loss-making ones. -> correct

2026: 11 May Shift 2

The point of minimum average cost at which the supply curve cuts the long run average cost (LRAC) curve is called ----------------- of a firm.

2025: 21 May Shift 1

In perfectly competitive market, the demand curve of a firm is?

2025: 13 May Shift 2

What are the key components of a perfectly competitive market?

(A) Large number of buyers and sellers.

(B) Homogeneous product.

(D) Asymmetric Information.

Choose the correct answer from the options given below:

2026: 13 May Shift 2

Match List-I with List-II

List-I	List-II
(A) Price-takers	(I) Break-even point.
(B) Price less than minimum point of AVC curve	(II) Normal profit.
(C) A firm earns normal profit	(III) Perfectly Competitive Market.
(D) A firm covers the explicit costs and opportunity costs	(IV) Shut down point.

Choose the correct answer from the options given below:

2026: 11 May Shift 1

Which of the following condition must be satisfied for profit maximization under perfect competition for the Short Run (SR) and for the Long Run (LR) respectively?

Where P = Price, AVC = Average variable cost, AFC = Average fixed cost, AC = Average cost.

2026: 20 May Shift 1

Choose the correct option(s) with respect to free entry and exit assumption of a perfectly competitive market.

(A) At equilibrium, no firm earns supernormal profit.

(B) As new firms enter the market, the supply curve shifts leftward.

(D) At equilibrium, no firm incurs losses by remaining in production.

Choose the correct answer from the options given below:

Solution

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CUET Economics Past Year Questions (Topic-Wise)