Micro

Forms of Market

Medium

Choose the correct options from the following in respect of Break-even point(BEP) of a firm-

(A) BEP is a point of minimum AVC where the SMC curve cuts the AVC curve.

(B) BEP is a point on the supply curve at which a firm earns only normal profit.

(C) BEP is possible both in long run and short run.

(D) BEP is the point of minimum average cost at which the supply curve cuts the LRAC curve.

Choose the correct answer from the options given below:

(A), (C) and (D) only

(A), (B) and (D) only

(B), (C) and (D) only

(A), (B) and (C) only

✅ Correct Option: 3

At the break-even point price equals minimum average cost, so the firm earns only normal profit (B); it exists in both short run (min SAC) and long run (min LRAC) (C), and the supply curve passes through minimum average cost (D). Statement (A) describes minimum AVC, which is the shutdown point, not the break-even point. Hence (B), (C), (D).

2025: 27 May Shift 2

In a perfectly competitive market, the marginal revenue curve is?

2025: 30 May Shift 1

Which of the following are features of a perfect competitive market?

(A) Free entry and exit of firms.

(B) Huge selling cost.

(D) perfect market knowledge among buyers.

Choose the correct answer from the options given below:

2026: 11 May Shift 2

The point of minimum average cost at which the supply curve cuts the long run average cost (LRAC) curve is called ----------------- of a firm.

2026: 20 May Shift 1

Choose the correct option(s) with respect to free entry and exit assumption of a perfectly competitive market.

(A) At equilibrium, no firm earns supernormal profit.

(B) As new firms enter the market, the supply curve shifts leftward.

(D) At equilibrium, no firm incurs losses by remaining in production.

Choose the correct answer from the options given below:

2025: 16 May Shift 1

Which of the following is not a feature of perfect competition?

2025: 30 May Shift 1

Match List-I with List-II

List-I	List-II
(A) Control Price	(I) Set below the equilibrium price
(B) Floor Price	(II) Fixed by the government for the labourers
(C) Minimum Wage Legislation	(III) Set above the equilibrium price
(D) Market Equilibrium	(IV) when demand and supply curve intersect.

Choose the correct answer from the options given below:

Solution

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CUET Economics Past Year Questions (Topic-Wise)