CUET Economics 2026 21st May Shift 1 PYQs

For a hypothetical firm, the total cost of producing 5 units of a commodity is Rs. 310 and that of producing 8 units is Rs. 850. If the firm has to spend Rs. 50 even when there is no output, what will be the marginal cost of producing the 8th unit?

In the short run, Average Variable Cost curve is a U-shaped cost curve because of----------------.

When output increases with smaller proportion compare to increase in inputs, this return is called?

1. Decreasing Return to scale
2. Increasing Return to scale.
3. Constant Return to scale.
4. Incremental Productivity.