In the short run, Average Variable Cost curve is a U-shaped cost curve because of----------------. Option 1: Law of Diminishing Marginal Utility Option 2: Law of Variable Proportions Option 3: Returns to Scale Option 4: Law of Demand

The answer is 'Law of Variable Proportions'. View full solution:

CUET Economics - In the short run, Average Variable Cost curve is a U-shaped cost curve because of----------------. | PYQs + Solutions

CUET Economics 2026 11th May Shift 2

Micro

Easy

Law of Diminishing Marginal Utility

Law of Variable Proportions

Returns to Scale

Law of Demand

✅ Correct Option: 2

Related questions:

6th June Shift 1

Which one of the following conditions is incorrect?

(Where, SMC - Short term Marginal Cost, AVC - Average Variable cost, SAC - Short run average cost, LRMC - Long run marginal cost, LRAC - Long run average cost.)

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.

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

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CUET Economics 2026 11th May Shift 2 PYQs

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