CUET Economics 2025 2 June Shift 1 PYQs

Arrange the given statements in chronological order stating the implications of free entry and exit assumptions in a equilibrium market.

(A) Supply curve shifts rightward, however demand remains unchanged.

(B) At the prevailing market price, each firm is earning a supernormal profit and will attract some new firms.

(C) Market prices fall, and supernormal profits are eventually wiped out.

(D) All firms in the market are earning normal profit, no more firms will have incentive to enter.

Choose the correct answer from the options given below:

Which of the following is NOT a condition for profit maximization of a perfectly competitive firm in the short run?

What would be the equilibrium number of firms in a market of identical firms, when market demand function $(Q_d)$, supply function of a single firm $(Q_s1)$ and equilibrium price (P) are given as

$Q_d = 180 - 2P$

$Q_{s1} = 15 + P$

$P = 15$

1. 5
2. 6
3. 8
4. 9