Which of the following is NOT a condition for profit maximization of a perfectly competitive firm in the short run? Option 1: The price 'p' must equal MC Option 2: Average revenue must be rising. Option 3: Price must be greater than the average variable cost (p > AVC) Option 4: Marginal cost must be non-decreasing at the profit maximizing level of output.

The answer is 'Average revenue must be rising.'. View full solution:

CUET Economics - Which of the following is NOT a condition for profit maximization of a perfectly competitive firm in the short run? | PYQs + Solutions

CUET Economics 2025 16 May Shift 1

Micro

Medium

The price 'p' must equal MC

Average revenue must be rising.

Price must be greater than the average variable cost (p > AVC)

Marginal cost must be non-decreasing at the profit maximizing level of output.

✅ Correct Option: 2