CUET Economics 2025 13 May Shift 2 PYQs

Arrange the following statements in the context of "U" shaped SAC curve.

(A) SAC is the sum of AVC and AFC.

(B) SAC falls when AVC and AFC decrease.

(C) When the fall in AFC is greater than the rise in AVC and SAC is still falling.

(D) When a rise in AVC becomes greater than the fall in AFC, SAC rises.

Choose the correct answer from the options given below:

In the short run, some of the factors of production of a firm ......

In inverse 'U'-shaped average product curve; as long as the value of Marginal Product remains higher than the value of the average product, in this condition the average product continues to ..........