CUET Economics 2026 15th May Shift 1 PYQs

How does an increase in price affect supply?

The given the Cobb-Douglas production function

$Q = L^{2/3}K^{1/3}$, which of the following is correct about this production function?

A. The firm produces Q amount of output using L and K inputs only.

B. The given production function exhibits decreasing returns to scale.

C. The given production function exhibits constant returns to scale.

D. The given production function exhibits increasing returns to scale.

Choose the correct answer from the options given below:

Choose correct statements from the following with reference to short-run cost curves:

(A) AVC and AC curves are 'U'-shaped.

(B) SMC curve cuts the AVC curve from below at the minimum point of AVC.

(C) AVC curve cuts the SMC curve from below at the minimum point of SMC.

(D) SMC curve is 'U' -shaped.

Choose the correct answer from the options given below: