CUET Economics 2026 11th May Shift 1 PYQs

Select the correct statements in respect to the relationship between short-run cost curves.

A. Marginal cost (SMC), average variable cost(AVC) and short run average cost curves(SMC) are 'U' shaped.

B. SMC curve cuts the AVC curve from below at the minimum point of AVC.

C. AVC curve cuts the SMC curve from below at the minimum point of SMC.

D. SMC curve cuts the SAC curve from below at the minimum point of SAC.

Choose the correct answer from the options given below:

The change in total cost per unit of change in output is known as by which name

Identify the correct sequence to establish the relation between marginal cost and average cost.

(A) When Marginal cost falls, average cost also falls.

(B) Marginal cost rises but average cost continues to fall.

(C) Marginal cost is equal to average cost.

(D) Marginal cost rises and average cost also rises.

Choose the correct answer from the options given below: