Practice post utme futo commerce 2018 Past Questions

Question 1

In a perfectly competitive market, the supply curve is a

Correct A. Horizontal line

B. Vertical line

C. U-shaped curve

D. L-shaped curve

Correct Answer: A

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Question 2

A company's marketing strategy involves creating a brand identity that is

Correct A. Unique and memorable

B. Similar to its competitors

C. Focused on price alone

D. Based on customer reviews

Correct Answer: A

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Question 3

The diagram below shows a

Correct A. Titration setup

B. Distillation setup

C. Crystallization setup

D. Filtration setup

Correct Answer: A

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Question 4

A firm's production function is given by the equation

A. ( Q = 2L + 3K )

Correct B. ( Q = 2L^2 + 3K )

C. ( Q = 2L^2 - 3K )

D. ( Q = 2L^2 + 5K )

Correct Answer: B

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Question 5

A company's marketing mix involves

Correct A. Product, price, promotion, and place

B. Product, price, promotion, and people

C. Product, price, place, and people

D. Product, price, promotion, and packaging

Correct Answer: A

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Question 6

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 7

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, how much will it cost the firm to produce 16 units of output?

A. ₦1600

B. ₦3200

Correct C. ₦6400

D. ₦12800

Correct Answer: C

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Question 8

A consumer has a budget of ₦1000 and is faced with the following prices for two goods: good X costs ₦200 per unit, and good Y costs ₦300 per unit. If the consumer's indifference curves are such that the marginal rate of substitution is 2, how many units of good X will the consumer buy?

A. 2 units

Correct B. 3 units

C. 4 units

D. 5 units

Correct Answer: B

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Question 9

A firm's demand function is given by Q = 100 - 2P. If the firm wants to maximize its revenue, what price should it charge for its product?

A. ₦20

Correct B. ₦30

C. ₦40

D. ₦50

Correct Answer: B

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Question 10

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, how much will it cost the firm to produce 16 units of output?

A. ₦1600

B. ₦3200

Correct C. ₦6400

D. ₦12800

Correct Answer: C

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Question 11

A company is considering two production methods for its new product: Method A, which requires an initial investment of ₦1.5 million and produces 10,000 units per month, and Method B, which requires an initial investment of ₦2 million and produces 15,000 units per month. If the company wants to produce at least 50,000 units per month and the cost of production is ₦500 per unit, which method should it choose?

A. Method A

Correct B. Method B

C. Both methods

D. Neither method

Correct Answer: B

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Question 12

A firm is considering two advertising strategies: Strategy A, which involves a ₦1 million campaign on social media and Strategy B, which involves a ₦2 million campaign on television. If the firm wants to reach at least 50% of its target audience and the cost of advertising is ₦500 per unit, which strategy should it choose?

A. Strategy A

Correct B. Strategy B

C. Both strategies

D. Neither strategy

Correct Answer: B

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Question 13

A company is considering two warehousing options: Option A, which involves a ₦1.5 million investment in a new warehouse and Option B, which involves a ₦2 million investment in a new warehouse with a higher storage capacity. If the company wants to store at least 50,000 units and the cost of storage is ₦500 per unit, which option should it choose?

A. Option A

Correct B. Option B

C. Both options

D. Neither option

Correct Answer: B

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Question 14

A firm is considering two foreign trade options: Option A, which involves exporting 10,000 units to a foreign country at a price of ₦1,000 per unit and Option B, which involves importing 10,000 units from a foreign country at a price of ₦1,000 per unit. If the firm wants to maximize its profit and the cost of transportation is ₦500 per unit, which option should it choose?

Correct A. Option A

B. Option B

C. Both options

D. Neither option

Correct Answer: A

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Question 15

A company is considering two insurance options: Option A, which involves a ₦1 million premium for a comprehensive insurance policy and Option B, which involves a ₦2 million premium for a comprehensive insurance policy with a higher coverage limit. If the company wants to minimize its risk and the cost of insurance is ₦500 per unit, which option should it choose?

A. Option A

Correct B. Option B

C. Both options

D. Neither option

Correct Answer: B

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Question 16

A company's marketing strategy is to increase sales by 15% within the next quarter. If the current sales revenue is ₦1,500,000, what is the expected sales revenue after the increase?

A. ₦1,700,000

B. ₦1,725,000

Correct C. ₦1,750,000

D. ₦1,775,000

Correct Answer: C

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Question 17

A firm produces two products, A and B. Product A requires 2 hours of labor and 3 units of raw material, while product B requires 3 hours of labor and 2 units of raw material. If the firm has 120 hours of labor and 180 units of raw material available, how many units of product A and product B should the firm produce to maximize profit?

A. 10 units of A and 15 units of B

Correct B. 15 units of A and 10 units of B

C. 20 units of A and 5 units of B

D. 5 units of A and 20 units of B

Correct Answer: B

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Question 18

A bank offers a 5% annual interest rate on deposits. If a customer deposits ₦10,000 for 2 years, how much interest will the customer earn?

A. ₦1,000

Correct B. ₦1,050

C. ₦1,100

D. ₦1,150

Correct Answer: B

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Question 19

A company's production costs are ₦500 per unit for the first 1,000 units and ₦300 per unit for units above 1,000. If the company produces 2,000 units, what is the total production cost?

A. ₦1,000,000

B. ₦1,050,000

Correct C. ₦1,100,000

D. ₦1,150,000

Correct Answer: C

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Question 20

A firm's revenue is given by the equation R(x) = 2x^2 + 5x - 3, where x is the number of units sold. If the firm sells 10 units, what is the revenue?

A. ₦53

B. ₦57

Correct C. ₦61

D. ₦65

Correct Answer: C

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Question 21

In a perfectly competitive market, the supply curve is upward-sloping because of the law of increasing

Correct A. diminishing returns

B. increasing costs

C. decreasing supply

D. increasing demand

Correct Answer: A

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Question 22

A firm's revenue is maximized when the marginal revenue equals the marginal cost. What is the marginal cost?

A. MC = MR

B. MC > MR

Correct C. MC < MR

D. MC = 0

Correct Answer: C

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Question 23

A firm's demand curve is given by Qd = 100 - 2P. If the price is 5, what is the quantity demanded?

A. 20

Correct B. 30

C. 40

D. 50

Correct Answer: B

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Question 24

A firm's supply curve is given by Qs = 2P. If the price is 10, what is the quantity supplied?

A. 20

Correct B. 30

C. 40

D. 50

Correct Answer: B

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Question 25

A firm's revenue is given by R = 100P. If the price is 10, what is the revenue?

A. 1000

Correct B. 2000

C. 3000

D. 4000

Correct Answer: B

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POST UTME FUTO 2018 Commerce | Objective

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