POST UTME PAN-ATLANTIC UNIVERSITY 2025 Commerce | Objective
Practice these randomly selected questions to test your readiness.
Question 1
A company is considering two different transportation options for its products. Which option is more likely to reduce transportation costs?
Question 2
A consumer has a budget of ₦1000 and a preference for two goods, A and B. The prices of the goods are ₦200 and ₦300 respectively. If the consumer's indifference curves are convex to the origin, and the budget constraint is given by 200A + 300B = 1000, what is the optimal combination of goods A and B that the consumer will choose?
Question 3
A company has a cost function given by C = 2L + 3K, where C is the cost, L is the labor, and K is the capital. If the company wants to minimize the cost, and the labor and capital are fixed at 10 and 15 respectively, what is the minimum cost?
Question 4
A company has a production cost of ₦10,000 per unit and a selling price of ₦15,000 per unit. If the company produces 100 units per day, what is the profit per unit?
Question 5
A firm's production function is given by Q = 2L^0.5K^0.5. If the firm wants to produce 16 units of output, and the price of labor is ₦100 per unit, and the price of capital is ₦200 per unit, what is the minimum cost of production?
Question 6
In a perfectly competitive market, the law of supply states that as the price of a good increases, the quantity supplied will
Question 7
A company is considering two different communication options for its customers. Which option is more likely to improve customer satisfaction?
Question 8
A company's financial statements show a net income of ₦1,000,000 and a total equity of ₦2,000,000. What is the company's return on equity (ROE) for the year?
Question 9
A firm has a cost structure consisting of fixed costs of ₦500,000 and variable costs of ₦0.50 per unit. If the firm produces 10,000 units, what is its total cost?
Question 10
A firm is considering setting up a new bank account to manage its cash flows. The bank account will require an initial deposit of ₦100 million and will have an annual maintenance fee of ₦20,000. The firm's current cash balance is ₦500 million, and the bank account will earn an interest rate of 8% per annum. What is the expected annual interest income from the bank account?
Question 11
A company has a revenue function given by R = 100Q - 2Q^2, where R is the revenue and Q is the quantity sold. If the company wants to maximize the revenue, and the quantity sold is fixed at 10, what is the maximum revenue?
Question 12
A consumer has a utility function given by U = 2A + 3B, where A and B are the quantities of two goods consumed. If the prices of the goods are ₦200 and ₦300 respectively, and the consumer's budget is ₦1000, what is the optimal combination of goods A and B that the consumer will choose?
Question 13
A company is considering setting up a new financial institution to provide loans to its customers. The company's current annual revenues are ₦1.5 billion, and the new financial institution is expected to generate an additional ₦750 million per annum. The company's cost of capital is 15% per annum. What is the expected return on investment (ROI) for the new financial institution?
Question 14
A company has a production capacity of 100 units per day. However, due to a shortage of raw materials, production is reduced to 80 units per day. What is the opportunity cost of producing 80 units per day instead of 100 units per day?
Question 15
A company is considering two different production options for its products. Which option is more likely to reduce production costs?
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