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?
A. 100 units
B. 200 units
C. 300 units
D. 400 units
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?
A. 250
B. 300
C. 350
D. 400
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?
A. ₦25 million
B. ₦50 million
C. ₦75 million
D. ₦100 million
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?
A. Increase the price
B. Decrease the price
C. Keep the price the same
D. Increase the quantity supplied
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?
A. 10%
B. 20%
C. 30%
D. 40%
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?
A. ₦1000
B. ₦2000
C. ₦3000
D. ₦4000
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?
A. General Liability Insurance
B. Professional Liability Insurance
C. Product Liability Insurance
D. Umbrella Insurance
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?
A. Increased Efficiency
B. Reduced Costs
C. Improved Customer Service
D. Enhanced Competitiveness
Question 9
In a perfectly competitive market, the supply curve is upward-sloping because of the law of increasing
A. opportunity cost
B. diminishing marginal returns
C. law of supply
D. law of demand
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?
A. Open Market Operations (OMO)
B. Reserve Requirements
C. Fiscal Policy
D. Credit Controls
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?
A. 10
B. 15
C. 20
D. 25
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?
A. 10%
B. 15%
C. 20%
D. 25%
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?
A. To measure liquidity
B. To evaluate profitability
C. To assess inventory turnover
D. To determine working capital
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.
A. Sole Trader
B. Limited Liability Partnership
C. Public Limited Company
D. Joint Venture
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?
A. To protect against financial losses
B. To reduce operational costs
C. To enhance customer satisfaction
D. To improve employee morale

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