Micro

Forms of Market

Medium

The minimum point of the AVC in the short run and the minimum point of the LRAC curve is known as:

Break-even point

Shut down point

No profit but loss only point

Super normal profit point

✅ Correct Option: 1,2

The minimum point of AVC is the short-run shut down point: if price falls below minimum AVC, the firm stops producing in the short run.

The minimum point of LRAC represents the long-run break-even or exit threshold, where the firm earns only normal profit. Since the question combines these two ideas, NTA's official answer key accepts both Option 1, Break-even point, and Option 2, Shut down point.

2026: 21 May Shift 1

Which one of the following fulfills for supply curve of a firm under perfectly competitive market in the long run?

2025: 28 May Shift 2

The existence of a large number of buyers and sellers in the perfectly competitive market means?

2025: 29 May Shift 2

Identify the incorrect option from the following related to a perfectly competitive market.

2026: 11 May Shift 2

The point of minimum average cost at which the supply curve cuts the long run average cost (LRAC) curve is called ----------------- of a firm.

2025: 31 May Shift 1

Select the INCORRECT feature of the market with respect to perfect competition.

The market consists of a large number of buyers and sellers.
Entry into the market as well as exit from the market are free for firms.
Buyers are price makers.
There is perfect knowledge.

2025: 28 May Shift 2

When Government fix the minimum price of any commodity this move of government is known by:

The minimum point of the AVC in the short run and the minimum point of the LRAC curve is known as:

Solution

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CUET Economics Past Year Questions (Topic-Wise)