POST UTME DELSU 2024 Commerce | Objective

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Question 1
A company specializes in producing and selling high-quality bicycles. The company's production process involves several stages, including design, manufacturing, and quality control. If the company's production process is considered a production function, what is the primary characteristic of this function?
A. It is a linear function.
Correct B. It is a non-linear function.
C. It is a Cobb-Douglas production function.
D. It is a constant returns to scale function.

Correct Answer: B

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Question 2
A firm's production function is given by the equation Q = 2L^0.5K^0.5, where Q is the quantity produced, L is the labor input, and K is the capital input. If the firm's labor input increases by 20% and its capital input remains constant, what is the percentage change in the quantity produced?
A. 10%
B. 20%
Correct C. 30%
D. 40%

Correct Answer: C

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Question 3
A company is considering exporting its products to a foreign market. The company's export price is 100 per unit, and the foreign market demand is given by the equation Q = 100 - 2P, where Q is the quantity demanded and P is the price. If the company wants to maximize its revenue, what price should it charge for its product?
A. 50
Correct B. 75
C. 90
D. 100

Correct Answer: B

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Question 4
A consumer has a budget of ₦1000 and is considering purchasing two goods, A and B. The prices of the goods are ₦200 and ₦300, respectively. If the consumer's utility function is given by the equation U = 2x + 3y, where x and y are the quantities of goods A and B, respectively, and U is the utility, what is the optimal combination of goods A and B that the consumer should purchase?
Correct A. (2, 1)
B. (3, 1)
C. (4, 1)
D. (5, 1)

Correct Answer: A

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Question 5
A company is considering investing in a new project. The project's cash flows are given by the equation CF = 100 + 20t - 5t^2, where CF is the cash flow and t is the time period. If the company's discount rate is 10%, what is the present value of the project's cash flows?
A. ₦1000
B. ₦1200
Correct C. ₦1500
D. ₦1800

Correct Answer: C

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Question 6
In a perfectly competitive market, the demand curve for a firm's product is its
Correct A. marginal revenue curve
B. marginal cost curve
C. average revenue curve
D. average cost curve

Correct Answer: A

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Question 7
A firm's revenue function is given by R(x) = 100x - 2x^2. If the firm's marginal revenue is 50, what is the value of x?
A. 10
B. 20
Correct C. 30
D. 40

Correct Answer: C

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Question 8
A company has a budget of ₦1,000,000 to spend on advertising. If the cost of advertising on TV is ₦200,000 per minute and the cost of advertising on radio is ₦150,000 per minute, how many minutes of TV advertising can the company afford if it wants to spend at least 60% of its budget on TV advertising?
A. 200
B. 250
Correct C. 300
D. 350

Correct Answer: C

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Question 9
A firm has a production function given by Q = 2L^0.5K^0.5. If the firm wants to produce 100 units of output, and the price of labor is ₦100 per unit and the price of capital is ₦200 per unit, how much will the firm spend on labor and capital?
A. ₦20000
B. ₦30000
Correct C. ₦40000
D. ₦50000

Correct Answer: C

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Question 10
A company has a portfolio of stocks and bonds with a total value of ₦1,500,000. If the company wants to diversify its portfolio by investing in a new stock, and the new stock has a beta of 1.5 and a correlation coefficient of 0.8 with the existing portfolio, how much should the company invest in the new stock?
A. ₦200000
B. ₦300000
Correct C. ₦400000
D. ₦500000

Correct Answer: C

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Question 11
In a perfectly competitive market, the law of supply states that as the price of a commodity increases, the quantity supplied will
A. decrease
Correct B. increase
C. remain constant
D. move in the opposite direction

Correct Answer: B

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Question 12
A firm's production function is given by Q = 2L^0.5K^0.5. If the firm's current labor and capital inputs are L = 16 and K = 9, respectively, what is the firm's current output?
A. 16
B. 20
Correct C. 24
D. 28

Correct Answer: C

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Question 13
A consumer has a budget of ₦1,000 and a preference for two goods, A and B. The prices of the goods are ₦200 and ₦300, respectively. If the consumer spends all of their budget on the two goods, what is the maximum amount of good B that the consumer can buy?
A. 2
Correct B. 3
C. 4
D. 5

Correct Answer: B

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Question 14
A firm's demand function is given by Q = 100 - 2P. If the firm's current price is P = 20, what is the firm's current quantity demanded?
A. 40
Correct B. 60
C. 80
D. 100

Correct Answer: B

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Question 15
A consumer has a utility function given by U = 2X + 3Y, where X and Y are the quantities of two goods consumed. If the consumer's current utility level is U = 15, and the prices of the goods are P_X = 2 and P_Y = 3, respectively, what is the consumer's current budget?
A. 100
B. 200
Correct C. 300
D. 400

Correct Answer: C

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Question 16
A company has two production lines, A and B, which produce 60% and 40% of the total output, respectively. Line A has a fixed cost of ₦150,000 and a variable cost of ₦50 per unit. Line B has a fixed cost of ₦120,000 and a variable cost of ₦30 per unit. If the selling price per unit is ₦100, what is the break-even point in units for the company?
A. 80,000 units
Correct B. 100,000 units
C. 120,000 units
D. 140,000 units

Correct Answer: B

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Question 17
A sole trader, Mr. A, has a business that generates an average monthly revenue of ₦500,000. His average monthly fixed expenses are ₦200,000, and his average monthly variable expenses are ₦150,000. If he wants to save ₦100,000 per month, what is the minimum monthly sales required?
A. ₦750,000
B. ₦800,000
Correct C. ₦850,000
D. ₦900,000

Correct Answer: C

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Question 18
A company has a production cost of ₦120 per unit and a selling price of ₦180 per unit. If the company wants to make a profit of ₦20 per unit, what is the minimum price at which the company should sell the product?
A. ₦140
Correct B. ₦160
C. ₦180
D. ₦200

Correct Answer: B

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Question 19
A company has a production cost of ₦80 per unit and a selling price of ₦120 per unit. If the company wants to make a profit of ₦20 per unit, what is the minimum price at which the company should sell the product?
A. ₦100
Correct B. ₦110
C. ₦120
D. ₦130

Correct Answer: B

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Question 20
A company has a production cost of ₦100 per unit and a selling price of ₦150 per unit. If the company wants to make a profit of ₦20 per unit, what is the minimum price at which the company should sell the product?
A. ₦120
B. ₦130
Correct C. ₦140
D. ₦150

Correct Answer: C

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Question 21
In a perfectly competitive market, the supply curve is upward-sloping because firms are willing to supply more of a good as its price increases, but they are not willing to supply as much of a good as its price decreases. What is the name of this phenomenon?
A. Giffen Goods
B. Income Effect
Correct C. Substitution Effect
D. Law of Diminishing Marginal Utility

Correct Answer: C

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Question 22
A firm's production function is given by Q = 2L^(1/2)K^(1/2). If the firm's current input levels are L = 16 and K = 9, what is the firm's current output level?
A. 24
Correct B. 36
C. 48
D. 60

Correct Answer: B

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Question 23
A firm's cost function is given by C(Q) = 2Q^2 + 10Q. If the firm's current output level is Q = 5, what is the firm's current total cost?
A. 50
Correct B. 60
C. 70
D. 80

Correct Answer: B

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Question 24
A firm's revenue function is given by R(Q) = 10Q - 2Q^2. If the firm's current output level is Q = 8, what is the firm's current revenue?
A. 48
Correct B. 60
C. 72
D. 84

Correct Answer: B

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Question 25
A firm's profit function is given by √(Q) = R(Q) - C(Q) = 10Q - 2Q^2 - 2Q^2 - 10Q. If the firm's current output level is Q = 6, what is the firm's current profit?
Correct A. -12
B. -8
C. -4
D. 0

Correct Answer: A

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