POST UTME ABU 2025 Commerce | Objective
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Question 1
A company's production function is given by Q = 2L^0.5K^0.5. If the company wants to produce 100 units of output, and the cost of labor is ₦50 per unit, while the cost of capital is ₦30 per unit, how much should it spend on labor and capital respectively?
Question 2
In a perfectly competitive market, the supply curve is horizontal and the demand curve is downward-sloping. What is the equilibrium price and quantity in this market?
Question 3
A company is considering the introduction of a new product line. The product requires a significant investment in new equipment and training for employees. The company's management is concerned about the potential impact on the company's cash flow. Which of the following financial ratios would be most useful in evaluating the company's ability to finance the new product line?
Question 4
In a perfectly competitive market, what is the relationship between the marginal revenue product of labor (MRPL) and the marginal factor cost of labor (MFC)?
Question 5
A company is considering the introduction of a new product line. The product requires a significant investment in new equipment and training for employees. The company's management is concerned about the potential impact on the company's cash flow. Which of the following financial ratios would be most useful in evaluating the company's ability to finance the new product line?
Question 6
A company's production function is given by Q = 2L^0.5K^0.5. If the company wants to produce 400 units of output, and the price of labor is ₦50 per unit, and the price of capital is ₦100 per unit, what is the minimum cost of production?
Question 7
A firm's production function is given by Q = 2L^0.5 * K^0.5, where Q is output, L is labor, and K is capital. If the firm's labor and capital inputs are increased by 20% and 15% respectively, what is the percentage change in output?
Question 8
A firm's insurance policy has a deductible of ₦10,000. If the firm's annual premium is ₦120,000, and the firm pays ₦50,000 in claims, what is the firm's expected loss?
Question 9
A firm's cost function is given by C(q) = 100 + 2q + 0.01q^2. If the firm produces 100 units of output, what is its total cost?
Question 10
In a perfectly competitive market, the supply curve is upward-sloping because of the law of increasing opportunity costs. However, this is not the case in a perfectly competitive market. What is the correct reason for the upward-sloping supply curve in a perfectly competitive market?
Question 11
A firm produces 100 units of a product and sells them at ₦100 each. If the fixed costs are ₦10,000 and the variable costs are ₦50 per unit, what is the profit?
Question 12
A firm's insurance policy has a deductible of ₦10,000. If the firm's annual premium is ₦120,000, and the firm pays ₦50,000 in claims, what is the firm's expected loss?
Question 13
A company is considering two different production processes for its product. Process A has a fixed cost of ₦100,000 and a variable cost of ₦50 per unit. Process B has a fixed cost of ₦150,000 and a variable cost of ₦30 per unit. If the selling price of the product is ₦80 per unit, which process should the company choose?
Question 14
A company's sole trader has a warehouse with a capacity of 10,000 units. If the company's average daily sales are 200 units, and the company operates 7 days a week, what is the probability that the warehouse will be empty within 5 weeks?
Question 15
A company is considering the use of a warehouse management system (WMS) to improve its inventory management. Which of the following is a key feature of a WMS?
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