CUET Economics 2025 13 May Shift 2 PYQs

A firm is operating in a market where it can sell more only by lowering the price of the good. Arrange the changes in total revenue of this firm in a sequential order.

(A) Total revenue falls.

(B) Total revenue starts from origin.

(C) Total revenue increases at a diminishing rate.

(D) Total revenue reaches its maximum.

Choose the correct answer from the options given below:

Which of the following is not true?

1. The production function of a firm is a monetary relationship between inputs used and output produced by the firm.
2. The production function gives the maximum quantity of output that can be produced.
3. A production function deals only with the efficient use of inputs.
4. A production function is defined for a given technology.

Which of the following conditions must hold for a firm to maximise its profit.

(A) Price= Short run marginal Cost

(B) Short Run marginal cost curve is non-decreasing

(C) Price ≤ Marginal Cost

(D) Price ≥ Average variable cost

Choose the correct answer from the options given below: