POST UTME ABU 2025 Commerce | Objective
Practice these randomly selected questions to test your readiness.
Question 1
A firm's profit function is given by \pi = R - C, where \pi is profit, R is revenue, and C is cost. If the firm's revenue and cost functions are given by R = 100Q - 2Q^2 and C = 50L + 20K respectively, what is the profit-maximizing level of output?
Question 2
A company is considering launching a new product. The product's demand curve is given by Qd = 100 - 2P, where Qd is the quantity demanded and P is the price. If the company's marginal cost (MC) is ₦20, what is the maximum price it can charge?
Question 3
A firm is considering two different production processes for its product. Process A requires an initial investment of ₦100,000 and has a variable cost of ₦50 per unit. Process B requires an initial investment of ₦150,000 and has a variable cost of ₦30 per unit. If the firm produces 10,000 units, what is the total cost of production for Process B?
Question 4
A company's marketing mix is given by the 4 Ps: Product, Price, Place, and Promotion. If the company wants to increase sales, which of the following strategies would be most effective?
Question 5
A firm's production function is given by Q = 2L^0.5K^0.5. If the firm wants to produce 400 units of output, and the price of labor is ₦50 per unit, and the price of capital is ₦100 per unit, what is the minimum cost of production?
Question 6
A firm has a warehouse with a capacity of 10,000 units. If the firm receives an order for 5,000 units, what is the remaining capacity?
Question 7
A company is considering two different insurance policies for its employees. Policy A has a premium of ₦50,000 and a deductible of ₦10,000. Policy B has a premium of ₦30,000 and a deductible of ₦5,000. If the company has 10 employees, what is the total premium for Policy A?
Question 8
A consumer protection agency receives a complaint from a customer who was sold a defective product. The agency finds that the product was indeed defective and that the seller had knowledge of the defect. What is the likely outcome?
Question 9
A firm is considering entering a new market. The market demand curve is given by Qd = 100 - 2P, where Qd is the quantity demanded and P is the price. If the firm's marginal cost (MC) is ₦20, what is the maximum price it can charge?
Question 10
A firm's demand function is given by Q = 100 - 2P. If the firm's marginal revenue function is MR = 200 - 4Q, what is the firm's optimal price?
Question 11
A bank's return on equity (ROE) is 15%. If the bank's net income is ₦500,000 and its equity is ₦3,000,000, what is its return on assets (ROA)?
Question 12
A company's production function is given by Q = 2L^0.5K^0.5. If the company wants to produce 400 units of output, and the price of labor is ₦50 per unit, and the price of capital is ₦100 per unit, what is the minimum cost of production?
Question 13
In a perfectly competitive market, what is the relationship between the marginal revenue product of labor (MRPL) and the marginal factor cost of labor (MFC)?
Question 14
A company is considering two different production processes for its product. Process A has a fixed cost of ₦100,000 and a variable cost of ₦50 per unit. Process B has a fixed cost of ₦150,000 and a variable cost of ₦30 per unit. If the selling price of the product is ₦80 per unit, which process should the company choose?
Question 15
A firm's revenue function is given by R = 100Q - 2Q^2, where R is revenue and Q is output. If the firm's output is increased by 20%, what is the percentage change in revenue?
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