POST UTME LEAD CITY UNIVERSITY 2022 Commerce | Objective
Practice these randomly selected questions to test your readiness.
Question 1
A firm is considering two different pricing strategies to sell its product. Strategy A involves a price of ₦500 per unit and is expected to result in a profit of ₦100 per unit sold. Strategy B involves a price of ₦600 per unit and is expected to result in a profit of ₦150 per unit sold. If the firm expects to sell 5,000 units of the product, which strategy should it choose?
Question 2
A company is considering two different production processes to manufacture a new product. Process A requires an initial investment of ₦1,500,000 and has a variable cost of ₦200 per unit. Process B requires an initial investment of ₦2,000,000 and has a variable cost of ₦150 per unit. If the company expects to sell 10,000 units of the product, which process should it choose?
Question 3
A firm is considering two different modes of transportation to transport its goods. Mode A costs ₦100 per unit of goods transported and has a fixed cost of ₦10,000. Mode B costs ₦120 per unit of goods transported and has a fixed cost of ₦20,000. If the firm needs to transport 1,000 units of goods, which mode of transportation should it choose?
Question 4
A firm is considering investing in a new production facility. The facility will cost ₦500 million to build and will generate annual revenues of ₦200 million. What is the payback period of the investment?
Question 5
A company is considering exporting its products to a foreign market. What is the main advantage of exporting?
Question 6
A company is considering outsourcing its logistics operations to a third-party provider. The provider will charge a fee of 10% of the total revenue generated by the company. What is the opportunity cost of outsourcing the logistics operations?
Question 7
A company is considering the introduction of a new product line. The product line has a high fixed cost of ₦500,000 and a variable cost of ₦200 per unit. The selling price of the product is ₦300 per unit. If the company expects to sell 2,000 units, what is the minimum price at which the product should be sold to break even?
Question 8
A company's production function is given by Q = 100L^0.5K^0.5, where Q is the quantity produced, L is the labor input, and K is the capital input. If the company increases its labor input from 100 to 121 units, and its capital input from 100 to 121 units, what is the new quantity produced?
Question 9
A firm has the following production costs: Fixed costs = ₦100,000, Variable costs = ₦50x, where x is the number of units produced. The firm produces 100 units. What is the total cost of production?
Question 10
A company is considering the introduction of a new product line. The product line has a high fixed cost of ₦1,250,000 and a variable cost of ₦300 per unit. The selling price of the product is ₦400 per unit. If the company expects to sell 4,000 units, what is the minimum price at which the product should be sold to break even?
Question 11
A consumer has the following utility function: U = 2X^0.5Y^0.5. The consumer's budget constraint is given by 2X + 3Y = 100. If the consumer is initially at point (20, 20), what is the new point on the indifference curve that the consumer will move to if the price of good Y increases by 20%?
Question 12
The concept of specialization in production refers to the process by which a firm focuses on producing a specific product or service, thereby increasing its efficiency and reducing costs. Which of the following is a characteristic of specialization in production?
Question 13
A company is considering two marketing strategies: a mass marketing approach and a niche marketing approach. Which strategy is more likely to result in higher customer satisfaction?
Question 14
A company is considering two different marketing strategies: a push strategy and a pull strategy. Which strategy is more likely to be effective in a market where the consumer is highly knowledgeable about the product?
Question 15
Under the Consumer Protection Act of 1999, which of the following is a fundamental right of a consumer?
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