POST UTME COAL CITY UNIVERSITY 2018 Commerce | Objective
Practice these randomly selected questions to test your readiness.
Question 1
A firm's supply function is given by P = 10 + 2Q, where P is the price and Q is the quantity supplied. If the firm's fixed cost is ₦1000 and its variable cost is ₦5 per unit, what is the firm's profit-maximizing quantity?
Question 2
A firm's revenue function is given by R(x) = 2x^2 + 10x. If the firm's marginal revenue is 20 when x = 5, what is the value of the firm's total revenue?
Question 3
A company has a policy of insuring its assets against loss or damage. If the company's assets are valued at ₦500 million and the insurance premium is 5% of the asset value, what is the amount of the insurance premium?
Question 4
A firm's demand function is given by Q = 100 - 2P, where Q is the quantity demanded and P is the price. If the firm wants to increase its revenue, what should it do?
Question 5
A firm's production function is given by Q = 2L^0.5K^0.5, where Q is the quantity produced, L is the units of labor, and K is the units of capital. If the firm wants to increase its production by 20% while keeping labor constant, what percentage increase in capital is required?
Question 6
A firm's revenue function is given by R = 2L^2 + 3H^2, where R is revenue, L is labor, and H is capital. If the firm increases labor from 100 to 121 units, and capital from 100 to 121 units, by how much will revenue increase?
Question 7
A business owner is considering purchasing liability insurance to protect against potential lawsuits. Which of the following types of insurance would provide the most comprehensive coverage?
Question 8
A company is considering outsourcing its logistics operations to a third-party provider. Which of the following benefits would be most likely to result from this decision?
Question 9
In a perfectly competitive market, the supply curve is upward-sloping because of the law of increasing
Question 10
The Central Bank of Nigeria (CBN) uses the following monetary policy tools to regulate the money supply in the economy. Which of the following is NOT a monetary policy tool used by the CBN?
Question 11
A consumer's indifference curve is given by the equation u(x,y) = 2x + 3y. If the consumer's income is 100 and the price of x is 5, what is the optimal quantity of y?
Question 12
A firm's production function is given by Q = 2L^0.5 + 3K^0.5, where Q is the quantity produced, L is labor and K is capital. If the firm wants to increase its output by 20%, what percentage increase in labor and capital is required?
Question 13
A company uses the following inventory turnover ratio to evaluate its inventory management: ( rac{Cost of Goods Sold}{Average Inventory} ). What is the primary purpose of this ratio?
Question 14
Determine the type of business unit that would be most suitable for a sole trader who wishes to expand their business operations into foreign markets.
Question 15
A company has the following insurance policy: ( egin{array}{c|c} ext{Policy} & ext{Premium} \ hline ext{Liability} & ext{₦1,000} \ ext{Property} & ext{₦500} \ ext{Workers' Compensation} & ext{₦200} \ end{array} ). What is the primary purpose of the insurance policy?
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