In a perfectly competitive market firms can enter and exit freely from the market, then the equilibrium price in this condition is always equal to? Option 1: Minimum Marginal Cost Option 2: Average Fixed Cost Option 3: Maximum Variable Cost Option 4: Minimum Average Cost

The answer is 'Minimum Average Cost'. View full solution:

CUET Economics - In a perfectly competitive market firms can enter and exit freely from the market, then the equilibrium price in this condition is always equal to? | PYQs + Solutions

CUET Economics 2026 21st May Shift 2

Micro

Easy

Minimum Marginal Cost

Average Fixed Cost

Maximum Variable Cost

Minimum Average Cost

✅ Correct Option: 4

Related questions:

12th May Shift 1

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

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

Choose the correct answer from the options given below:

2 June Shift 1

Match List-I with List-II

List-I	List-II
(A) Perfect Competition	(I) A typical characteristic of perfect competition.
(B) Perfectly elastic demand curve	(II) An individual firm is a price taker.
(C) Degree of price control under perfect competition	(III) The firm can sell any amount of its output at the prevailing price.
(D) Freedom of entry and exit	(IV) No control over price.

Choose the correct answer from the options given below:

15th May Shift 1

If there is a positive level of output at which a firm's profit is maximized in the long run, three conditions must hold at that output level are:

A. P is equal to LRMC

B. P is less than LRAC

C. LRMC is non - decreasing

D. P is greater than or equal to the minimum LRAC

Choose the correct answer from the options given below: