If there is a positive level of output at which a firm's profit is maximized in the short run, that condition must not hold at that output level: Option 1: Price = Short run Marginal Cost. Option 2: Short run Marginal Cost is non-decreasing. Option 3: Price = Short run Average Cost. Option 4: Price ≥ Average Variable Cost.

The answer is 'Price = Short run Average Cost.'. View full solution:

CUET Economics - If there is a positive level of output at which a firm's profit is maximized in the short run, that condition must not hold at that output level: | PYQs + Solutions

CUET Economics 2025 22 May Shift 1

Micro

Medium

Price = Short run Marginal Cost.

Short run Marginal Cost is non-decreasing.

Price = Short run Average Cost.

Price ≥ Average Variable Cost.

✅ Correct Option: 3