CUET Economics 2025 3 June Shift 1 PYQs

From the following which is incorrect with respect to firm's profit maximization in long run?

1. Price = Long Run Marginal Cost
2. LRMC is first decreasing and then increasing
3. Price = Short Run Marginal Cost
4. Price ≥ Long Run Average Variable Cost

Identify the correct statements from the following:

A. SMC curve cuts AVC curve from below at the minimum point of AVC

B. SMC curve cuts the SAC curve from below at the minimum point of SAC

C. Average fixed cost curve is upward sloping

D. LRMC curve cuts the LRAC curve from below at the minimum point of LRAC

Choose the correct answer from below:

Select the correct statements in the context of relation between AP and MP.

(A) As long as the value of MP remains higher than the value of the AP, the AP continues to rise.

(B) When AP falls, MP has to be less than AP.

(C) At the first unit of variable input ,AP and MP are same

(D) MP curve cuts AP curve from above at its minimum.

Choose the correct answer from the options given below: