CUET Economics 2025 22 May Shift 1 - 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: | PYQs + Solutions

CUET Economics 2025 22 May Shift 1

Micro

Medium

(A), (C) and (D) only

(A), (B) and (C) only

(A), (B), (C) and (D)

(B), (C) and (D) only

✅ Correct Option: 1

Related questions:

3 June Shift 2

Match List-I with List-II

List-I	List-II
(A) Total revenue	(I) Minimum of LRAC curve.
(B) Supply	(II) A firm earns only normal profit.
(C) Shut down point	(III) Market price multiplied by the firm's output.
(D) Break-even point	(IV) Quantity sold at a given price.

Choose the correct answer from the options given below:

13 May Shift 1

Consider the production function $q = f(x_1, x_2)$ where the firm produces q amout of output $x_1$ amount of factor 1 and $x_2$ amount of factor 2. The firm decides to increase the employment level of both the factors t (t > 1). Identify the equation for decreasing returns to scale from the following.

$q = f(x_1, x_2)$
$f (tx_1, tx_2) = tf (x_1, x_2)$
$f (tx_1, tx_2) < tf (x_1, x_2)$
$f (tx_1, tx_2) > tf x_1, x_2)$

31 May Shift 1

Select the INCORRECT condition for profit maximisation in the perfect market.

The price must equal to MC.
Marginal cost must be non-decreasing.
Price must be less than the average cost.
Price must be greater than the average cost.

CUET Economics 2025 22 May Shift 1 PYQs

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