CUET Economics 2026 13h May Shift 2 PYQs

Under perfect competition if firms earn supernormal profits. Arrange following statements to arrive at the implication of free entry and exit of firms

(A) Market price fall in such a manner that firms will be earning normal profits only and thus no more firms will have incentive to enter the market.

(B) Some new firms will enter the market

(C) At the prevailing market price, each firm is earning supernormal profit.

(D) Demand remains unchanged but the market supply curve shifts rightward

Arrange the given statements in chronological order stating the implications of free entry and exit assumptions in a equilibrium market.

(A) Supply curve shifts rightward, however demand remains unchanged.

(B) At the prevailing market price, each firm is earning a supernormal profit and will attract some new firms.

(C) Market prices fall, and supernormal profits are eventually wiped out.

(D) All firms in the market are earning normal profit, no more firms will have incentive to enter.

Choose the correct answer from the options given below:

Arrange the following in ascending order as impact of the unit tax on supply :

(A) After imposition of unit tax ,firm will supply less unit of output

(B) Firm's long run average cost and marginal cost increases by Rs.t

(C) A unit tax is that tax which is imposes on per unit sale of output.

(D) suppose the government place a unit tax of Rs,t

Choose the correct answer from the options given below: