POST UTME DELSU 2024 Commerce | Objective

Practice these randomly selected questions to test your readiness.

Question 1
A company's production process involves the use of specialized machinery. If the machinery breaks down, the company may experience a significant loss of productivity. Which of the following best describes this situation?
A. Economies of scale
B. Diseconomies of scale
C. Specialization
D. Product differentiation
Question 2
A company has a portfolio of stocks and bonds with a total value of ₦1,500,000. If the company wants to diversify its portfolio by investing in a new stock, and the new stock has a beta of 1.5 and a correlation coefficient of 0.8 with the existing portfolio, how much should the company invest in the new stock?
A. ₦200000
B. ₦300000
C. ₦400000
D. ₦500000
Question 3
A company is considering exporting its products to a foreign market. The company's export price is 100 per unit, and the foreign market demand is given by the equation Q = 100 - 2P, where Q is the quantity demanded and P is the price. If the company wants to maximize its revenue, what price should it charge for its product?
A. 50
B. 75
C. 90
D. 100
Question 4
A consumer's budget constraint is given by P1Q1 + P2Q2 = 100. If the price of good 1 is ₦10 and the price of good 2 is ₦20, and the consumer spends ₦80 on good 1, how much does the consumer spend on good 2?
A. ₦20
B. ₦40
C. ₦60
D. ₦80
Question 5
A firm's demand function is given by Q = 100 - 2P. If the firm's current price is P = 20, what is the firm's current quantity demanded?
A. 40
B. 60
C. 80
D. 100
Question 6
A firm's production function is given by Q = 2L^0.5K^0.5. If the firm's current labor and capital inputs are L = 16 and K = 9, respectively, what is the firm's current output?
A. 16
B. 20
C. 24
D. 28
Question 7
A company uses a just-in-time inventory system. If the lead time is 5 days and the ordering cost is ₦1,000 per order, what is the optimal order quantity?
A. 100 units
B. 200 units
C. 500 units
D. 1,000 units
Question 8
A firm's revenue function is given by R(Q) = 2Q^2 - 10Q + 5. If the firm produces 5 units of output, what is the marginal revenue?
A. ₦10
B. ₦20
C. ₦30
D. ₦40
Question 9
In a perfectly competitive market, the supply curve is upward-sloping because firms are willing to supply more of a good as its price increases, but they are not willing to supply as much of a good as its price decreases. What is the name of this phenomenon?
A. Giffen Goods
B. Income Effect
C. Substitution Effect
D. Law of Diminishing Marginal Utility
Question 10
A company has two production lines, A and B, which produce 60% and 40% of the total output, respectively. Line A has a fixed cost of ₦150,000 and a variable cost of ₦50 per unit. Line B has a fixed cost of ₦120,000 and a variable cost of ₦30 per unit. If the selling price per unit is ₦100, what is the break-even point in units for the company?
A. 80,000 units
B. 100,000 units
C. 120,000 units
D. 140,000 units
Question 11
A firm's profit function is given by √(Q) = R(Q) - C(Q) = 10Q - 2Q^2 - 2Q^2 - 10Q. If the firm's current output level is Q = 6, what is the firm's current profit?
A. -12
B. -8
C. -4
D. 0
Question 12
A company has two production units: Unit A and Unit B. Unit A produces 80% of the total output, while Unit B produces 20%. If Unit A's production cost is ₦120 per unit and Unit B's production cost is ₦180 per unit, what is the total production cost of 1,000 units?
A. ₦120,000
B. ₦144,000
C. ₦180,000
D. ₦216,000
Question 13
A sole trader has a business income of ₦500,000 and a business expense of ₦200,000. What is the net profit?
A. ₦300,000
B. ₦200,000
C. ₦100,000
D. ₦50,000
Question 14
A company has a budget of ₦1,000,000 to spend on advertising. If the cost of advertising on TV is ₦200,000 per minute and the cost of advertising on radio is ₦150,000 per minute, how many minutes of TV advertising can the company afford if it wants to spend at least 60% of its budget on TV advertising?
A. 200
B. 250
C. 300
D. 350
Question 15
A company has a production cost of ₦120 per unit and a selling price of ₦180 per unit. If the company wants to make a profit of ₦20 per unit, what is the minimum price at which the company should sell the product?
A. ₦140
B. ₦160
C. ₦180
D. ₦200

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