POST UTME GREENFIELD UNIVERSITY 2023 Commerce | Objective

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Question 1
In a perfectly competitive market, the supply curve is upward-sloping because of the law of increasing
A. diminishing returns
B. increasing costs
C. decreasing marginal revenue
Correct D. increasing marginal cost

Correct Answer: D

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Question 2
A firm's revenue is maximized when the marginal revenue equals the
Correct A. marginal cost
B. average cost
C. marginal product
D. average revenue

Correct Answer: A

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Question 3
A company's marketing mix consists of the 4 Ps, which are
Correct A. Product, Price, Place, Promotion
B. Product, Price, People, Process
C. Product, Place, Price, Promotion
D. Product, Price, People, Product

Correct Answer: A

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Question 4
A firm's break-even point is the point at which its total revenue equals its
A. total fixed costs
B. total variable costs
Correct C. total costs
D. average cost

Correct Answer: C

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Question 5
A company's market share is the percentage of the total market that it
A. serves
B. supplies
C. controls
Correct D. captures

Correct Answer: D

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Question 6
A company's production function is given by the equation Q = 100L^0.5K^0.5, where Q is the quantity produced, L is the labor input, and K is the capital input. If the company increases its labor input from 100 to 121 units, and its capital input from 100 to 121 units, by how many percentage points will the quantity produced increase?
A. 10%
Correct B. 20%
C. 30%
D. 40%

Correct Answer: B

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Question 7
A firm's cost function is given by C(x) = 2x^2 + 100x + 5000, where x is the number of units produced. If the firm produces 20 units, what is the total cost of production?
A. ₦10,500
Correct B. ₦12,000
C. ₦13,500
D. ₦15,000

Correct Answer: B

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Question 8
A company's revenue function is given by R(x) = 50x - 0.5x^2, where x is the number of units sold. If the company sells 100 units, what is the total revenue?
A. ₦4,500
Correct B. ₦5,000
C. ₦5,500
D. ₦6,000

Correct Answer: B

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Question 9
A firm's profit function is given by P(x) = R(x) - C(x), where R(x) is the revenue function and C(x) is the cost function. If the firm produces 50 units, what is the profit?
A. ₦1,500
B. ₦2,000
Correct C. ₦2,500
D. ₦3,000

Correct Answer: C

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Question 10
A company's supply function is given by Q = 100 + 2P, where Q is the quantity supplied and P is the price. If the price is ₦200, how many units will the company supply?
A. 200 units
B. 250 units
Correct C. 300 units
D. 350 units

Correct Answer: C

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Question 11
A firm specializes in producing a single product, which is a variant of a product offered by a competitor. This strategy is an example of:
A. Product Differentiation
B. Product Diversification
Correct C. Product Specialization
D. Product Standardization

Correct Answer: C

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Question 12
A firm's production costs are increasing due to the high demand for its product. To maintain its market share, the firm should consider:
A. Increasing the price of the product
B. Decreasing the production quantity
Correct C. Improving the production process
D. Diversifying its product line

Correct Answer: C

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Question 13
A firm is considering expanding its operations to a new market. The firm's management team has identified the following factors as critical to the success of the expansion:
Correct A. Market size, competition, and government regulations
B. Market size, competition, and consumer behavior
C. Market size, competition, and production costs
D. Market size, competition, and distribution channels

Correct Answer: A

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Question 14
A firm is considering adopting a new production technology that will increase its production capacity. However, the technology requires a significant investment in new equipment and training for the workforce. The firm's management team should consider the following factors when making a decision:
Correct A. The cost of the new equipment, the cost of training the workforce, and the potential increase in production capacity
B. The cost of the new equipment, the cost of training the workforce, and the potential decrease in production costs
C. The cost of the new equipment, the cost of training the workforce, and the potential increase in market share
D. The cost of the new equipment, the cost of training the workforce, and the potential decrease in market share

Correct Answer: A

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Question 15
A firm is considering entering a new market through a joint venture with a local partner. The firm's management team should consider the following factors when evaluating the potential risks and benefits of the joint venture:
Correct A. The potential risks and benefits of the joint venture, the level of control the firm will have over the venture, and the potential for cultural differences to impact the venture
B. The potential risks and benefits of the joint venture, the level of control the firm will have over the venture, and the potential for language barriers to impact the venture
C. The potential risks and benefits of the joint venture, the level of control the firm will have over the venture, and the potential for differences in business practices to impact the venture
D. The potential risks and benefits of the joint venture, the level of control the firm will have over the venture, and the potential for differences in market conditions to impact the venture

Correct Answer: A

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Question 16
In a perfectly competitive market, the law of diminishing marginal utility implies that the marginal utility of the last unit of a good consumed is always greater than the marginal utility of the first unit consumed. What is the correct statement regarding the law of diminishing marginal utility?
A. The law of diminishing marginal utility states that the marginal utility of the last unit of a good consumed is always greater than the marginal utility of the first unit consumed.
Correct B. The law of diminishing marginal utility states that the marginal utility of the last unit of a good consumed is always less than the marginal utility of the first unit consumed.
C. The law of diminishing marginal utility states that the marginal utility of the last unit of a good consumed is always equal to the marginal utility of the first unit consumed.
D. The law of diminishing marginal utility states that the marginal utility of the last unit of a good consumed is always greater than or equal to the marginal utility of the first unit consumed.

Correct Answer: B

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Question 17
A firm's production function is given by Q = 2L^0.5 + 3K^0.5. If the firm's labor and capital inputs are increased by 10% and 20% respectively, what is the percentage change in output?
A. 10%
B. 20%
Correct C. 30%
D. 40%

Correct Answer: C

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Question 18
A company has a portfolio of stocks with a beta of 1.2 and a risk-free rate of 5%. If the market risk premium is 8%, what is the expected return on the portfolio?
A. 10%
Correct B. 12%
C. 14%
D. 16%

Correct Answer: B

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Question 19
A firm's cost function is given by C = 2L + 3K. If the firm's labor and capital inputs are increased by 10% and 20% respectively, what is the percentage change in total cost?
A. 10%
B. 20%
Correct C. 30%
D. 40%

Correct Answer: C

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Question 20
A company has a portfolio of bonds with a yield to maturity of 6% and a duration of 5 years. If the market interest rate increases by 2%, what is the expected change in the bond's price?
A. 2%
Correct B. 4%
C. 6%
D. 8%

Correct Answer: B

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Question 21
A firm specializes in producing a single product, and its production function is given by Q = 100L^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 and capital inputs are 100 units each, what is the quantity produced?
Correct A. 1000
B. 500
C. 2000
D. 3000

Correct Answer: A

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Question 22
A company uses a marketing mix of 4P's to promote its product. If the product's price is ₦500, the place is a supermarket, the promotion is through social media, and the product is a food item, what is the product?
A. Bread
B. Rice
C. Pasta
Correct D. Pizza

Correct Answer: D

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Question 23
A firm's production function is given by 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 and capital inputs are 100 units each, what is the quantity produced?
Correct A. 1000
B. 500
C. 2000
D. 3000

Correct Answer: A

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Question 24
A company uses a marketing mix of 4P's to promote its product. If the product's price is ₦500, the place is a supermarket, the promotion is through social media, and the product is a food item, what is the product?
A. Bread
B. Rice
C. Pasta
Correct D. Pizza

Correct Answer: D

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Question 25
A firm's production function is given by Q = 100L^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 and capital inputs are 100 units each, what is the quantity produced?
Correct A. 1000
B. 500
C. 2000
D. 3000

Correct Answer: A

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