CUET Economics 2025 22 May Shift 1 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:

When more workers are hired, the land begins to get 'crowded'. Each worker now has insufficient land to work efficiently. So the output added by each additional worker is now proportionally less as a result the marginal product begins to __________.

How is the value of the average product calculated in the short-run?

1. By dividing the total product by the number of labor.
2. By dividing the change in total product by the change in labor.
3. By dividing the change in total product by the number of labor.
4. By dividing the total product by the change in labor.