POST UTME OAU 2020 Commerce | Objective

Practice these randomly selected questions to test your readiness.

Question 1
In a perfectly competitive market, the law of diminishing marginal utility implies that the demand curve for a firm's product is likely to be:
A. Vertical
B. Horizontal
C. Inelastic
D. Perfectly Elastic
Question 2
A firm has a market share of 20% in a particular industry. If the industry's total market size is ₦150 million, what is the firm's revenue?
A. ₦20,000,000
B. ₦30,000,000
C. ₦40,000,000
D. ₦50,000,000
Question 3
A company has two production plants, A and B. Plant A produces 100 units of a product per day, while plant B produces 150 units per day. If the total demand for the product is 250 units per day, what is the probability that plant A will produce more than 50% of the total demand?
A. 0.2
B. 0.4
C. 0.6
D. 0.8
Question 4
A firm's revenue function is given by R = 2Q^2 + 3Q, where R is revenue and Q is output. If the firm produces 5 units of output, what will be its revenue?
A. ₦35
B. ₦40
C. ₦45
D. ₦50
Question 5
The demand for a product is given by the equation Q = 100 - 2P, where Q is the quantity demanded and P is the price. If the price elasticity of demand is 0.5, find the price at which the quantity demanded is 50 units.
A. ₦20
B. ₦30
C. ₦40
D. ₦50
Question 6
A company's financial statements include a balance sheet, income statement, and cash flow statement. Which of the following is a primary purpose of the income statement?
A. To show the company's financial position at a specific date
B. To show the company's liquidity
C. To show the company's profitability
D. To show the company's cash flows
Question 7
A country's trade balance is given by the equation TB = X - M, where TB is the trade balance, X is the value of exports, and M is the value of imports. If the country's exports are ₦100 billion and its imports are ₦120 billion, what is the trade balance?
A. ₦20 billion
B. ₦20,000,000,000
C. ₦-20 billion
D. ₦-20,000,000,000
Question 8
A company's marketing strategy involves creating a brand image that appeals to a specific demographic. This approach is an example of which of the following marketing concepts?
A. Segmentation
B. Targeting
C. Positioning
D. Differentiation
Question 9
A firm has a production cost of ₦5,000 per unit and a selling price of ₦7,000 per unit. If the firm sells 1,000 units, what is the profit?
A. ₦1,000,000
B. ₦1,500,000
C. ₦2,000,000
D. ₦2,500,000
Question 10
A consumer protection agency receives a complaint about a product that has a defect. The agency decides to investigate the matter. What is the primary goal of the investigation?
A. To determine the cause of the defect
B. To identify the responsible party
C. To determine the extent of the damage
D. To provide compensation to the consumer
Question 11
A firm's production function is given by Q = 2L^(1/2)K^(1/2). If the firm's current labor and capital inputs are 4 and 9 respectively, what is the marginal product of labor?
A. 1
B. 2
C. 3
D. 4
Question 12
A company is considering launching a new product in the Nigerian market. Which of the following marketing strategies would be most effective in reaching the target audience?
A. Social media advertising
B. Television commercials
C. Influencer marketing
D. Print media advertising
Question 13
A company has a profit of ₦50,000 and a total revenue of ₦200,000. If the company's cost of goods sold is ₦100,000, what is its gross margin?
A. 0.2
B. 0.3
C. 0.5
D. 0.7
Question 14
A firm's profit function is given by π = R - C. If the firm's revenue and cost functions are R = 100Q - 2Q^2 and C = 50 + 10L + 2K respectively, what is the firm's profit when Q = 10, L = 5 and K = 8?
A. 50
B. 100
C. 150
D. 200
Question 15
A company's marketing strategy involves creating a brand image that appeals to a specific demographic. This approach is an example of which of the following marketing concepts?
A. Segmentation
B. Targeting
C. Positioning
D. Differentiation

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