CUET Economics 2025 13 May Shift 2 PYQs

When output increases with the larger proportion compare to increase in inputs, this return is called?

1. Decreasing Return to scale.
2. Increasing return to scale.
3. Constant Return to scale.
4. Diminishing Marginal Product.

Average fixed cost curve is actually a ................... curve:

Select the correct statements from the following with regard to cost curves :

(A) Short run marginal cost, average variable cost and short run average cost curves are 'U'-shaped.

(B) SMC curve cuts the AVC curve from below at the minimum point of AVC.

(C) SMC curve cuts the AFC curve from below at the minimum point of AFC.

(D) Average fixed cost curve is downward sloping.

Choose the correct answer from the options given below: