CUET Economics 2026 11th May Shift 2 PYQs

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

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

Which of the following is true about the relationship between Total Revenue (TR) and Marginal Revenue (MR) in a perfectly competitive market?

(A) Total Revenue will increase at a constant rate.

(B) Marginal Revenue is more than Average Revenue.

(C) Marginal Revenue remains constant throughout.

(D) Marginal Revenue is equal to Average Revenue.

Choose the correct answer from the options given b-elow:

Identify the correct statements from the following in the context of normal profit and break-even point (BEP).

(A) BEP is the point at which a firm earns only normal profit.

(B) A perfectly competitive firm earns normal profit in long run.

(C) Profit level that keeps a firm in the existing business is called super-normal profit.

(D) Profit level that keeps a firm in the existing business is called normal profit.

Choose the correct answer from the options given below: