POST UTME SUMMIT UNIVERSITY 2020 Commerce | Objective

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Question 1 View Details
A company's marketing strategy involves a mix of product differentiation and market segmentation. Which of the following is a characteristic of product differentiation?
Correct A. Offering a unique product feature
B. Targeting a specific geographic region
C. Creating a new product line
D. Reducing production costs

Correct Answer: A

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Question 2 View Details
A firm's production function is given by the equation ( Q = 2L^2 + 3K ), where Q is the quantity produced, L is labor, and K is capital. If the firm wants to produce 100 units of output, how many units of labor are required if capital is fixed at 10 units?
A. 20 units
B. 30 units
Correct C. 40 units
D. 50 units

Correct Answer: C

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Question 3 View Details
A consumer protection agency is considering a new regulation to prohibit the use of misleading advertising. Which of the following is a key benefit of this regulation?
A. Increased competition among firms
B. Improved product quality
Correct C. Protection of consumers from false advertising
D. Reduced production costs

Correct Answer: C

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Question 4 View Details
A firm's foreign trade strategy involves exporting goods to a foreign market. Which of the following is a key advantage of exporting?
A. Increased competition from domestic firms
B. Improved product quality
Correct C. Access to new markets and customers
D. Reduced production costs

Correct Answer: C

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Question 5 View Details
A firm's production function is given by the equation ( Q = 2L^2 + 3K ), where Q is the quantity produced, L is labor, and K is capital. If the firm wants to produce 100 units of output, how many units of capital are required if labor is fixed at 10 units?
A. 30 units
B. 40 units
Correct C. 50 units
D. 60 units

Correct Answer: C

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Question 6 View Details
A company is considering two different production methods for its new product. Method A requires an initial investment of ₦5 million and produces 10,000 units per month, while Method B requires an initial investment of ₦3 million and produces 8,000 units per month. If the company expects to sell each unit for ₦2,500, what is the minimum number of months it must operate to break even?
A. 4 months
B. 6 months
C. 8 months
Correct D. 10 months

Correct Answer: D

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Question 7 View Details
A firm is considering two different marketing strategies for its new product. Strategy A involves a high level of advertising and promotion, while Strategy B involves a low level of advertising and promotion. If the firm expects to sell 10,000 units per month at a price of ₦2,500, what is the minimum number of months it must operate to break even, assuming that the fixed costs are ₦5 million and the variable costs are ₦1,500 per unit?
A. 3 months
B. 4 months
C. 5 months
Correct D. 6 months

Correct Answer: D

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Question 8 View Details
A company is considering two different transportation methods for its products. Method A involves a fixed cost of ₦1 million and a variable cost of ₦500 per unit, while Method B involves a fixed cost of ₦500,000 and a variable cost of ₦750 per unit. If the company expects to sell 10,000 units per month at a price of ₦2,500, what is the minimum number of months it must operate to break even?
A. 4 months
B. 6 months
C. 8 months
Correct D. 10 months

Correct Answer: D

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Question 9 View Details
A bank is considering two different investment options for its customers. Option A involves a fixed interest rate of 10% and a variable interest rate of 5%, while Option B involves a fixed interest rate of 15% and a variable interest rate of 3%. If the bank expects to invest ₦1 million per month for 6 months, what is the total interest earned from each option?
A. ₦90,000
B. ₦108,000
C. ₦126,000
Correct D. ₦144,000

Correct Answer: D

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Question 10 View Details
A firm is considering two different production methods for its new product. Method A requires an initial investment of ₦5 million and produces 10,000 units per month, while Method B requires an initial investment of ₦3 million and produces 8,000 units per month. If the firm expects to sell each unit for ₦2,500, what is the minimum number of months it must operate to break even?
A. 4 months
B. 6 months
C. 8 months
Correct D. 10 months

Correct Answer: D

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Question 11 View Details
In a just-in-time (JIT) inventory system, what is the primary goal of the warehouse manager?
A. To minimize inventory costs
B. To maximize storage capacity
Correct C. To ensure timely delivery of products
D. To reduce the need for inventory management

Correct Answer: C

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Question 12 View Details
A company is sued for violating the Consumer Protection Act. Which of the following is a valid defense?
A. The company had a valid contract with the consumer
B. The company had obtained the necessary permits
C. The consumer had knowledge of the product's risks
Correct D. The company had followed industry standards

Correct Answer: D

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Question 13 View Details
A sole trader has a business that generates an annual profit of ₦500,000. What is the tax liability?
A. ₦100,000
Correct B. ₦200,000
C. ₦300,000
D. ₦400,000

Correct Answer: B

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Question 14 View Details
A company is considering investing in a new production line. The initial investment is ₦10 million, and the expected annual profit is ₦2 million. What is the payback period?
A. 5 years
Correct B. 6 years
C. 7 years
D. 8 years

Correct Answer: B

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Question 15 View Details
A consumer purchases a product with a price of ₦1,500. The product has a 10% discount, and the consumer pays with a 5% cashback card. What is the final amount paid?
A. ₦1,350
Correct B. ₦1,400
C. ₦1,450
D. ₦1,500

Correct Answer: B

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Question 16 View Details
In a perfectly competitive market, the supply curve is upward-sloping because
Correct A. Firms are willing to supply more of a good as its price increases.
B. Firms are willing to supply less of a good as its price increases.
C. Firms are willing to supply the same quantity of a good regardless of its price.
D. Firms are willing to supply more of a good as its price decreases.

Correct Answer: A

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Question 17 View Details
A firm's revenue is maximized when the price elasticity of demand is
A. Less than 1
Correct B. Greater than 1
C. Equal to 1
D. Negative

Correct Answer: B

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Question 18 View Details
A consumer's indifference curve is downward-sloping because
Correct A. The consumer is willing to trade off one good for another.
B. The consumer is unwilling to trade off one good for another.
C. The consumer is indifferent between the two goods.
D. The consumer is willing to consume more of both goods.

Correct Answer: A

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Question 19 View Details
A firm's marginal revenue product is the change in
Correct A. Total revenue
B. Total cost
C. Marginal cost
D. Average revenue

Correct Answer: A

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Question 20 View Details
A perfectly competitive market is characterized by
A. A single buyer and a single seller
Correct B. Many buyers and many sellers
C. A single buyer and many sellers
D. Many buyers and a single seller

Correct Answer: B

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Question 21 View Details
In a competitive market, a firm's demand curve is downward-sloping. What is the likely effect of an increase in the firm's fixed costs on its supply curve?
A. The supply curve shifts to the left.
Correct B. The supply curve shifts to the right.
C. The supply curve remains unchanged.
D. The supply curve becomes perfectly elastic.

Correct Answer: B

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Question 22 View Details
A company's marketing strategy involves creating a new product line that targets a specific demographic. Which of the following is a key benefit of this approach?
A. Increased market share
B. Improved brand recognition
Correct C. Targeted marketing
D. Reduced production costs

Correct Answer: C

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Question 23 View Details
A firm's production function is given by Q = 2L^0.5K^0.5. If the firm's labor and capital inputs are increased by 20% and 15% respectively, what is the resulting change in output?
A. Output increases by 10%
Correct B. Output increases by 15%
C. Output increases by 20%
D. Output remains unchanged

Correct Answer: B

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Question 24 View Details
A company's marketing mix involves a product that is priced at 100. If the company wants to increase sales by 20%, what is the minimum price reduction required?
A. 10%
Correct B. 15%
C. 20%
D. 25%

Correct Answer: B

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Question 25 View Details
A firm's supply curve is given by Q = 2P + 10. If the price of the good increases by 10%, what is the resulting change in output?
A. Output increases by 10%
Correct B. Output increases by 20%
C. Output increases by 30%
D. Output remains unchanged

Correct Answer: B

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