CUET Economics 2025 22 May Shift 2 PYQs

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

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

Match the LIST-I with LIST-II

LIST-I	LIST-II
A. Short run marginal cost	I. A rectangular hyperbola shaped curve whose value decreases with increase in output.
B. Total fixed cost	II. The shape of this cost curve is U-shaped and its value is undefined at zero output.
C. Average fixed cost	III. An upward sloping curve derived grom the vertical summation of TFC and TVC.
D. Total Cost	IV. A horizontal straight line, the value of which cannot be changed.

Choose the correct answer from the options given below:

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: