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CUET Economics 2026 PYQs21 May Shift 2. Free, no login required.

Micro

past year questions, CUET Economics 2026 21 May Shift 2

Production & Costs

past year questions, Micro, CUET Economics 2026 21 May Shift 2

Medium

Select the correct statements in respect to the relationship between short-run cost curves.

A. Marginal cost (SMC), average variable cost(AVC) and short run average cost curves(SMC) 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 cuts the SAC curve from below at the minimum point of SAC.

Choose the correct answer from the options given below:

Solution

✅ Correct Option: 2

SMC, AVC and SAC are all U-shaped in the short run (A). SMC cuts AVC from below at the minimum point of AVC (B) and cuts SAC from below at the minimum point of SAC (D). Statement C is incorrect: it is SMC that cuts the average curves at their minimum points, not AVC cutting SMC at minimum SMC. Hence A, B and D only.

Note: In statement A, the third curve is labelled SMC in the NTA paper; we have read it as SAC, which appears to be the intended abbreviation.

Related questions:

2025: 28 May Shift 1

Arrange the following statements considering the shape of long run marginal costs (LRMC).

(A) As output increases, LRAC initially falls (MC < AC).

(B) For the first unit of output, both LRMC and LRAC are the same.

(C) After a certain point, LRAC rises (MC > AC).

(D) LRMC curve is therefore a 'U'-shaped curve.

Choose the correct answer from the options given below:

  1. (A), (B), (C), (D)
  2. (B), (A), (C), (D)
  3. (B), (A), (D), (C)
  4. (C), (B), (D), (A)

2025: 14 May Shift 1

Match List-I with List-II

List–IList–II
(A) A proportional increase in all inputs results in an increase in output by a smaller proportion(I) Constant returns to scale
(B) A proportional increase in all inputs results in an increase in output by a larger proportion(II) Law of variable proportions
(C) A proportional increase in all inputs results in an increase in output by the same proportion(III) Decreasing Returns to Scale
(D) Factor proportions change as long as one factor is held constant and the other factors increases(IV) Increasing Returns to Scale

Choose the correct answer from the options given below:

2025: 30 May Shift 1

Calculate total cost of production for producing 100 vases ?

2025: 30 May Shift 2

The point of minimum average cost at which the supply curve cuts the long run average cost curve is called?

2025: 29 May Shift 2

The shape of the average fixed cost curve is ........................

2025: 31 May Shift 1

From the following which is incorrect with respect to firm's profit maximization in long run?

  1. Price = Long Run Marginal Cost
  2. LRMC is first decreasing and then increasing
  3. Price = Short Run Marginal Cost
  4. Price ≥ Long Run Average Variable Cost

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