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:

Question

Option 1: (A), (B) and (D) only

Option 2: (A), (C) and (D) only

Option 3: (B), (C) and (D) only

Option 4: (A), (B) and (C) only

AfterBoards · Accepted Answer

The answer is '(A), (B) and (D) only'. View full solution:

List-I	List-II
(A) Price-takers	(I) Break-even point.
(B) Price less than minimum point of AVC curve	(II) Normal profit.
(C) A firm earns normal profit	(III) Perfectly Competitive Market.
(D) A firm covers the explicit costs and opportunity costs	(IV) Shut down point.

CUET Economics 2026 20th May Shift 1 PYQs

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