CUET Economics 2025 3 June Shift 2 PYQs

In the short run and long run, the shapes of the cost curves for a typical firm are defined as

(A). SMC curve cuts the AVC curve from below at its minimum point.

(B). LRAC curve cuts the LRMC curve from below at the minimum point of LRMC.

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

(D). Average fixed cost curve is downward sloping.

Choose the correct answer from the options given below:

The core reason behind the arising law of proportion is............

1. Factor proportion changes with keeping one factor constant.
2. Decrease in all input.
3. Increase in all input.
4. All factors remain constant.

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: