Which one of the following fulfills for supply curve of a firm under perfectly competitive market in the long run? Option 1: Rising part of the LRMC curve from and above the minimum point of LRAC Option 2: Falling part of the LRAC curve from and above the minimum point of LRMC Option 3: Rising part of the LRMC curve from and below the minimum point of LRAC Option 4: Rising part of the LRMC curve from and above the maximum point of LRAC

Answer: Rising part of the LRMC curve from and above the minimum point of LRAC. Solution: In the long run a competitive firm produces only if price covers long run average cost, i.e. P ≥ minimum LRAC, and equates P = LRMC on its rising portion. So the long run supply curve is the rising part of the LRMC curve from and above the minimum point of the LRAC curve.

Micro

Forms of Market

Medium

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

Rising part of the LRMC curve from and above the minimum point of LRAC

Falling part of the LRAC curve from and above the minimum point of LRMC

Rising part of the LRMC curve from and below the minimum point of LRAC

Rising part of the LRMC curve from and above the maximum point of LRAC

✅ Correct Option: 1

In the long run a competitive firm produces only if price covers long run average cost, i.e. $P \geq$ minimum LRAC, and equates $P = LRMC$ on its rising portion. So the long run supply curve is the rising part of the LRMC curve from and above the minimum point of the LRAC curve.

2025: 3 June Shift 1

In the context of perfect competition, which one of the following is not correct?

2025: 13 May Shift 2

What are the key components of a perfectly competitive market?

(A) Large number of buyers and sellers.

(B) Homogeneous product.

(D) Asymmetric Information.

Choose the correct answer from the options given below:

2026: 6 June Shift 1

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

2025: 3 June Shift 2

A perfectly competitive market in an economy is categorized by the following features.

(A) Firms are price-takers.

(B) Average revenue is equal to market price.

(D) Marginal revenue is equal to market price.

Choose the correct answer from the options given below:

2025: 13 May Shift 2

Price ceiling is one concept which provides safeguard to______

2026: 13 May Shift 1

Match List-I with List-II

List-I	List-II
(A) Total Revenue (TR)	(I) TR /quantity (q)
(B) Average Revenue (AR)	(II) ΔTR/Δq
(C) Marginal Revenue (MR)	(III) TR-TC
(D) Profit (π)	(IV) price × quantity

Choose the correct answer from the options given below:

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

Solution

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