Option 3: Average cost -> When average cost (AC) is falling in the long run, it means each additional unit produced is adding less to the total cost than the current average. This can only happen when the marginal cost (MC) - the cost of producing one more unit - is less than the average cost. The marginal cost pulls the average down. This is a fundamental relationship: MC < AC when AC is falling, MC > AC when AC is rising, and MC = AC at the minimum point of AC. -> correct
In long run as long as average cost is falling, marginal cost must be less than the .......
CUET UG 2025 — Economics Micro
2025mcqeasy
In long run as long as average cost is falling, marginal cost must be less than the .......
Official previous-year question
Held on 22 May 2025 · Verified 13 Jul 2026.
Options
- A
Total Fixed Cost.
- B
Average Variable Cost.
- C
Average cost.
- D
Total Cost.
Did you get this right?
Sign in to track your attempts and accuracy.
Your note
Sign in to keep a private note on this question. Nothing you write is ever public.
CUET UG Micro in other years
More CUET UG Micro questions
The point on the supply curve at which a firm earns only normal profit is called ...........
2025easy
The price and quantity demanded are __________
2025medium
Select the INCORRECT feature of the market with respect to perfect competition. 1. The market consists of a large number of buyers and sellers. 2. Entry into the market as well as exit from the market are free for firms. 3. Buyers are price makers. 4. There is perfect knowledge.
2025medium
The allocation of scarce resources and the distribution of the final goods and services are the _____ of any economy. 1. States problems 2. Consumption problems 3. Central problems 4. Production problems
2025easy
Any allocation of resources by the society would result in the _____ of a particular combination of different goods and services.
2025easy
Other Economics topics for CUET UG
Keep practicing Micro
Work through every CUET UG Micro PYQ, year by year.