CUET Economics 2025 22 May Shift 2 PYQs

A firm wishes to maximize its profit, find the correct conditions from the following, that must be held by the firm at q₂ at which its profit is maximum.

(A) The price must be less than the average variable cost

(B) The price must be greater than the average variable cost

(C) Marginal cost must be non-decreasing

(D) The price, p, must equal MC

Choose the correct answer from the options given below:

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.

At the positive level of output, where a firm's profit is maximized, the following conditions must hold.

(A) $p = LRMC$

(B) LRMC is non-decreasing at $q_0$

(C) $p \leq LRAC$

(D) $p \geq$ min. LRAC

Choose the correct answer from the options given below: