POST UTME OSUSTECH 2023 Commerce | Objective
Practice these randomly selected questions to test your readiness.
Question 1
A company's production function is given by Q = 100L^0.5K^0.25, where Q is the quantity produced, L is the labor input, and K is the capital input. If the company increases labor input by 20% and capital input by 15%, what is the percentage change in the quantity produced?
Question 2
A company has the following probability distribution for the number of units it sells in a day:
| Units Sold | Probability |
| --- | --- |
| 0 | 0.1 |
| 1 | 0.3 |
| 2 | 0.2 |
| 3 | 0.1 |
| 4 | 0.3 |
What is the expected value of the number of units sold in a day?
Question 3
A company has the following revenue function: R = 2x + 3y. If the price of x is ₦2 and the price of y is ₦3, what is the optimal combination of x and y?
Question 4
A company's cost function is given by C(x) = 2x^2 + 5x - 3, where x is the number of units produced. If the company produces 10 units, what is its total cost?
Question 5
In a perfectly competitive market, the supply curve is upward-sloping because of the law of increasing
Question 6
A company has a production function Q = 100L^0.5K^0.25, where Q is the quantity produced, L is the labor input, and K is the capital input. If the company increases labor input by 20% and capital input by 15%, what is the percentage change in the quantity produced?
Question 7
A sole trader's business is not a separate legal entity from its owner. What is the implication of this?
Question 8
A firm is considering two investment projects. Project A has a 10% chance of generating a profit of ₦100,000 and a 90% chance of generating a profit of ₦50,000. Project B has a 20% chance of generating a profit of ₦150,000 and an 80% chance of generating a profit of ₦20,000. Which project has a higher expected profit?
Question 9
A firm is considering two different production technologies: Technology A and Technology B. Technology A has a fixed cost of ₦100,000 and a variable cost of ₦50 per unit produced. Technology B has a fixed cost of ₦150,000 and a variable cost of ₦30 per unit produced. If the firm produces 1,000 units, how much will it save by using Technology A instead of Technology B?
Question 10
The _______________ of a company is the amount of its share capital that has been issued to its members.
Question 11
A firm's production function is given by Q = 2L^0.5 + 3K^0.5, where Q is the quantity produced, L is the labor input, and K is the capital input. If the firm wants to produce 10 units of output, and it has a labor input of 4 units, how much capital should it hire?
Question 12
The concept of comparative advantage in international trade is based on the idea that countries should specialize in producing goods for which they have a lower opportunity cost compared to other countries. What is the opportunity cost of producing a good?
Question 13
The _______________ of a company is the amount of its share capital that has been subscribed by its members.
Question 14
A firm's production function is given by Q = 2L^0.5 + 3K^0.5, where Q is the quantity produced, L is the labor input, and K is the capital input. If the firm wants to produce 10 units of output, how much labor should it hire?
Question 15
A firm has a budget constraint of 1000 units of currency, and it wants to maximize its profit. The firm's revenue function is given by R = 2Q, and its cost function is given by C = 3Q^2. What is the firm's optimal quantity of output?
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