POST UTME ACHIEVERS UNIVERSITY 2019 Economics | Objective
Practice these randomly selected questions to test your readiness.
Question 1
A firm in Nigeria is producing a commodity with a production function Q = 2L^0.5K^0.5. If the price of the commodity is ₦100 and the wage rate is ₦50, what is the profit-maximizing level of labor?
Question 2
A consumer has a budget of ₦100 and wants to buy two goods, A and B. The prices of the goods are ₦20 and ₦30, respectively. If the consumer wants to sp\end at least ₦50 on good A, what is the maximum amount the consumer can sp\end on good B?
Question 3
A consumer's utility function is given by U = 2x + 3y, where x and y are the quantities of two goods. If the consumer's income is ₦1000 and the prices of the two goods are ₦5 and ₦10 respectively, what is the consumer's optimal bundle of goods?
Question 4
A firm has a production function given by Q = 2L^0.5K^0.5, where Q is the output, L is the labor, and K is the capital. If the firm wants to increase its output by 20% and has 10 units of labor and 8 units of capital, what is the new output?
Question 5
A firm's production function is given by Q = 2L^0.5K^0.5, where Q is output, L is labor, and K is capital. If the firm's labor and capital inputs are doubled, what is the effect on output?
Question 6
The following diagram shows a perfectly competitive market with two firms, A and B. If firm A increases its price from ₦100 to ₦120, what will be the effect on firm B's output?
Question 7
A firm is producing a good with a production function \( Q = 2L^2 + 3K^2 \), where ( L ) is labor and ( K ) is capital. If the firm's \cost function is ( C(L,K) = 2L + 3K + 10 ), find the input combination that minimizes the \cost of producing 100 units of output.
Question 8
A firm's demand function is given by Q = 100 - 2P. The firm's marginal revenue function is MR = 50 - 2Q. If the firm's fixed \cost is ₦500, what is the firm's optimal output?
Question 9
A firm is facing a demand curve ( D(p) = 100 - 2p ) and a supply curve ( S(p) = 20 + 5p ). If the firm's marginal revenue is ( MR(p) = 100 - 4p ), find the profit-maximizing price and quantity.
Question 10
A monopolist faces a demand curve given by Q = 100 - 2P. The firm's marginal revenue function is MR = 50 - 2Q. If the firm's fixed \cost is ₦500, what is the firm's optimal price?
Question 11
A consumer's indifference curve is given by U = 2x + 3y, where x and y are the quantities of two goods. If the consumer's income is ₦1000 and the prices of the two goods are ₦5 and ₦10 respectively, what is the consumer's optimal bundle of goods?
Question 12
A firm produces two goods, X and Y, u\sing two inputs, labor (L) and capital (K). The production functions are given by X = 2L + 3K and Y = 4L + 2K. If the firm has 10 units of labor and 8 units of capital, what is the total output?
Question 13
A firm's production function is given by Q = 2L^0.5K^0.5. If the firm's input prices are w_L = ₦100 and w_K = ₦200, and the firm's output price is P = ₦500, what is the firm's optimal input combination?
Question 14
A firm is operating in a perfectly competitive market with a cons\tant \cost function. If the firm's average \cost curve intersects its marginal \cost curve at a point where the average \cost is ₦120, what is the firm's optimal output?
Question 15
A firm has a budget constraint of 100 units of labor and 50 units of capital. If the price of labor is ₦50 and the price of capital is ₦100, what is the opportunity \cost of labor?
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