Skip to content
We use only essential cookies to keep you signed in and remember your preferences. See our Cookie Policy.
TestStop
MocksPracticeResourcesIndiaBlogPricing
Sign in
Questions › CUET-PG › CUET-PG 2026 › Q54
4 marks, −1Microeconomics › Costs of production › Short-run cost curves and their relationshipsModerateabout 1 min

CUET-PG 2026 Question 54: Costs of production

Consider the following statements.

A. Average Fixed Cost (AFC) always decline with increase in output.

B. Marginal Cost (MC) intersect AVC and Average Total Cost (ATC) at their minimum point.

C. Learning Curve implies cost rises with accumulated output.

D. In the long run, all costs are variable.

E. Longrun Average Cost (LAC) is envelop of Shortrun Average Cost (SAC) curves.

Choose the correct answer from the options given below:

Tap an option to check your answer.

Answer and worked solution

Checking your account…

Costs of production has come up 83 times in 7 exams since 2006.

What this question tests

This question is on Short-run cost curves and their relationships, part of Costs of production in Microeconomics.

Fixed, variable, average and marginal cost, and how marginal cost relates to average cost.

TestStop has 17 past-paper questions on this subtopic; the nearest in year are below.

  • GATE 2023 · Q45A firm in a market with perfect competition has the following total cost (TC) function: TC(Q) = a + b(Q)…
Take this paper as a timed mockMore on Short-run cost curves and their relationships

Similar questions from other papers

  • GATE 2026 · Q53In terms of the general relations among total cost, average cost and marginal cost, which of the following statements is/are FALSE?
  • IIT JAM 2026 · Q28A single-input production function is given by Q=L⁰·²⁵, where Q>0 and L>0 denote output and the single input. The unit price of L is w>0. The cost is C₁ when no output…
  • UGC-NET 2026 · Q52Which of the following level of utilization is considered as "Normal" by a firm?
  • CUET-PG 2025 · Q7If the marginal cost of a firm is given as the function of output, C′(Q) = 2 e^(0.2Q) and if the fixed cost is 75, find the total cost function.
  • GATE 2025 · Q51A Cobb-Douglas type short-run production function is given by q = 2√LK, where q,L,K are the output, labour and capital, respectively. K is fixed at K̄. The unit price…

Question from the CUET-PG 2026 paper. Solutions are TestStop's own. Not affiliated with or endorsed by any examination authority.