Micro

Production & Costs

Easy

Keeping other factor constant, A change in the price of input brings about a change in the supply of a commodity.

Arrange the process of this change in the correct sequence:

A. The average cost of production of the commodity reduces.

B. The supply of a commodity increases.

C. The profit per unit of the producer rises.

D. If the price of input falls.

Choose the correct answer from the options given below:

C, B, A, D

B, D, C, A

B, A, D, C

D, A, C, B

✅ Correct Option: 4

The causal chain runs from the input market to the output market: the price of the input falls (D), so the average cost of producing the commodity reduces (A), which raises the profit per unit of the producer (C), inducing the producer to increase the supply of the commodity (B). Hence the sequence is D, A, C, B.

2025: 28 May Shift 1

Which of the following statements are correctly explaining the relationship between the marginal revenue (MR) and price elasticity of demand?

(A). Price elasticity is less than 1 when MR is negative.

(B). Price elasticity is more than 1 when MR is negative.

(C). Price elasticity is more than 1 when MR is positive.

(D). Price elasticity is less than 1 when MR is positive.

Choose the correct answer from the options given below:

(A) and (D) only
(A) and (B) only
(B) and (D) only
(A) and (C) only

2025: 13 May Shift 1

The difference between the revenue and cost is known as________

2025: 3 June Shift 2

The cost of a firm has increased from Rs. $67$ to Rs. $80$ when the units of cotton production rose from $8$ to $9$ . Calculate the marginal cost of a firm?

2025: 21 May Shift 1

At the present level of production, the marginal revenue exceeds the marginal cost of production. In order to attain equilibrium, the producer should___

2025: 13 May Shift 2

Set of all possible combinations of the two inputs that yield the same maximum possible level of output is known as.........

2026: 6 June Shift 1

Match List-I with List-II

List-I	List-II
(A) Constant returns to scale	(I) When a proportional increase in all inputs results in an increase in output by a larger proportion.
(B) Decreasing Returns to Scale	(II) The relationship between inputs used and output produced by the firm.
(C) Increasing Returns to Scale	(III) When a proportional increase in all inputs results in an increase in output by a smaller proportion.
(D) Production function	(IV) When a proportional increase in all inputs results in an increase in output by the same proportion.

Choose the correct answer from the options given below:

Solution

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CUET Economics Past Year Questions (Topic-Wise)