Match List-I with List-II:List-IList-II(A)Long run(I)(TC at q1 units)…

Match List-I with List-II:

List-I		List-II
(A)	Long run	(I)	(TC at q₁ units) – (TC at q₁ – 1 units)
(B)	Long run average cost (LRAC)	(II)	All factors of production can be varied
(C)	Long run marginal cost (LRMC) of the q₁th unit	(III)	Constant returns to scale is observed
(D)	Minimum point of the LRAC curve	(IV)	Total cost divided by output

Choose the correct answer from the options given below:

Answer & explanation

Correct answer: option 1

The correct answer is Option (1) → (A)-(II), (B)-(IV), (C)-(I), (D)-(III)

In the long run every input can be varied, so there is no fixed cost. Long run average and marginal cost are defined as in the short run.

List-I	List-II	Reason
(A) Long run	(II) All factors of production can be varied	In the long run all inputs can be varied.
(B) Long run average cost (LRAC)	(IV) Total cost divided by output	LRAC is cost per unit of output: TC / q.
(C) Long run marginal cost (LRMC) of the q₁th unit	(I) (TC at q₁ units) – (TC at q₁ – 1 units)	LRMC of the q₁th unit is the TC it adds.
(D) Minimum point of the LRAC curve	(III) Constant returns to scale is observed	LRAC falls under IRS and rises under DRS; at its minimum, CRS holds.

NCERT (2026-27): “3.7.2 Long Run Costs In the long run, all inputs are variable. There are no fixed costs. The total cost and the total variable cost therefore, coincide in the long run. Long run average cost (LRAC) is defined as cost per unit of output, i.e. …”

“3.7.2 Long Run Costs … Long run marginal cost (LRMC) is the change in total cost per unit of change in output. When output changes in discrete units, then, if we increase production from q1–1 to q1 units of output, the marginal cost of producing …”

“Shapes of the Long Run Cost Curves … Accordingly, the LRAC curve is a ‘U’-shaped curve. Its downward sloping part corresponds to IRS and upward rising part corresponds to DRS. At the minimum point of the LRAC curve, CRS is observed.”