Get Started
Start Free Mocks
CUETMOCK

Ace Your

CUET Preparation Today

Start Free Mocks
Home Questions XDZAJ8ASSJ
Target Exam

CUET

Subject

Economics

Chapter

Micro Economics: Production and Costs

Question:

Study the graph given below and answer the questions.

Which of the following statement (s) is/are correct?

Statement 1: To the left of q1 , AVC is falling and SMC is more than AVC.

Statement 2: To the right of q1 , AVC is rising and SMC is greater than AVC.

Options:

Only Statement 1 is correct.

Only Statement 2 is correct.

Both statements are correct.

None of the given statement is correct.

Correct Answer:

Only Statement 2 is correct.

Explanation:

The correct answer is Option 2: Only Statement 2 is correct.

Statement 1: To the left of q1 , AVC is falling and SMC is more than AVC. This is false. To the left of q1 , AVC is falling and SMC is less than AVC.

Statement 2: To the right of q1 , AVC is rising and SMC is greater than AVC. This is true.

CUET Questions