Practice post utme igbinedion university commerce 2025 Past Questions

Question 1

A firm specializes in producing a single product. If the firm's production function is given by Q = 100L^0.5, where Q is the quantity produced and L is the labor input, and the firm's labor input is 400 units, what is the quantity produced?

Correct A. 200

B. 400

C. 600

D. 800

Correct Answer: A

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Question 2

A company has two production plants, A and B. Plant A produces 100 units of a product per day, while plant B produces 200 units per day. If the company wants to produce a total of 500 units per day, and the cost of producing one unit in plant A is ₦50, while the cost of producing one unit in plant B is ₦75, what is the minimum cost of producing 500 units per day?

Correct A. ₦25,000

B. ₦30,000

C. ₦35,000

D. ₦40,000

Correct Answer: A

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Question 3

A consumer protection agency wants to regulate the prices of goods in a market. If the demand function for a product is given by Q = 1000 - 2P, where Q is the quantity demanded and P is the price, and the supply function is given by Q = 2P - 100, what is the equilibrium price?

A. ₦200

Correct B. ₦250

C. ₦300

D. ₦350

Correct Answer: B

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Question 4

A firm wants to transport a shipment of goods from point A to point B. If the distance between the two points is 100 km, and the firm has a truck that can travel at a speed of 50 km/h, what is the time taken to transport the shipment?

A. 2 hours

Correct B. 3 hours

C. 4 hours

D. 5 hours

Correct Answer: B

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Question 5

A company wants to expand its operations to a new market. If the company's current market share is 20%, and the new market has a size of 100,000 units, what is the maximum market share the company can achieve?

A. 20%

B. 30%

C. 40%

Correct D. 50%

Correct Answer: D

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Question 6

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 wants to increase output by 20% while keeping labor constant, what percentage increase in capital is required?

Correct A. 10%

B. 20%

C. 30%

D. 40%

Correct Answer: A

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Question 7

A company is considering two different modes of transportation for its goods: road and rail. The cost of transporting goods by road is ₦500 per unit, while the cost of transporting goods by rail is ₦300 per unit. If the company wants to transport 1000 units of goods, what is the total cost of transportation by road and rail respectively?

Correct A. ₦500,000

B. ₦300,000

C. ₦700,000

D. ₦1,000,000

Correct Answer: A

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Question 8

A firm's revenue function is given by R(x) = 2x^2 + 5x - 3, where x is the number of units sold. If the firm wants to maximize its revenue, what is the optimal number of units to sell?

Correct A. 0

B. 5

C. 10

D. 15

Correct Answer: A

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Question 9

A company is considering two different modes of payment for its customers: cash and credit. The company charges a 5% interest rate on credit sales. If a customer purchases a product worth ₦10,000 on credit, how much will the customer pay in total?

A. ₦10,000

Correct B. ₦10,500

C. ₦11,000

D. ₦11,500

Correct Answer: B

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Question 10

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 wants to increase output by 20% while keeping labor constant, what percentage increase in capital is required?

Correct A. 10%

B. 20%

C. 30%

D. 40%

Correct Answer: A

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Question 11

A firm specializes in producing a single product, which is a type of commodity. The firm's production function is given by the equation ( Q = 10L^0.5K^0.5 ), where Q is the quantity produced, L is the units of labor, and K is the units of capital. If the firm wants to produce 100 units of the commodity, and it has 4 units of labor and 9 units of capital available, what is the minimum amount of capital it must have to produce 100 units?

A. 5

B. 6

Correct C. 7

D. 8

Correct Answer: C

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Question 12

A bank's balance sheet is given by the equation ( AS = D + C ), where AS is the assets, D is the deposits, and C is the capital. If the bank has 100 units of assets, 50 units of deposits, and 20 units of capital, what is the bank's capital?

A. 10

B. 15

Correct C. 20

D. 25

Correct Answer: C

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Question 13

A firm exports a product to a foreign country. The firm's export function is given by the equation ( E = 2X^2 + 3Y^2 ), where E is the export quantity, X is the domestic price, and Y is the foreign price. If the domestic price is 10 units and the foreign price is 5 units, what is the export quantity?

A. 50

B. 60

Correct C. 70

D. 80

Correct Answer: C

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Question 14

A firm uses a marketing strategy to promote its product. The firm's marketing function is given by the equation ( M = 2P^2 + 3A^2 ), where M is the marketing effort, P is the price, and A is the advertising expenditure. If the price is 20 units and the advertising expenditure is 10 units, what is the marketing effort?

A. 100

B. 120

Correct C. 140

D. 160

Correct Answer: C

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Question 15

A firm uses a warehousing strategy to store its products. The firm's warehousing function is given by the equation ( W = 2S^2 + 3R^2 ), where W is the warehousing effort, S is the storage capacity, and R is the rental expenditure. If the storage capacity is 50 units and the rental expenditure is 20 units, what is the warehousing effort?

A. 250

B. 300

Correct C. 350

D. 400

Correct Answer: C

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Question 16

A firm's production function is given by the Cobb-Douglas production function: ( Q = 10K^{rac{1}{2}}L^{rac{1}{2}} ), where Q is the quantity produced, K is the capital stock, and L is the labor force. If the firm's capital stock increases by 20% and the labor force remains constant, what is the percentage change in the quantity produced?

A. 10%

Correct B. 20%

C. 30%

D. 40%

Correct Answer: B

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Question 17

A company is considering two different investment opportunities. Opportunity A has a 10% chance of returning 100,000 and a 90% chance of returning 0. Opportunity B has a 20% chance of returning 150,000 and an 80% chance of returning 0. Which opportunity has a higher expected return?

A. Opportunity A

Correct B. Opportunity B

C. Opportunity A and Opportunity B are equally likely

D. Neither opportunity has a higher expected return

Correct Answer: B

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Question 18

A firm's demand function is given by the equation: ( Q = 100 - 2P ), where Q is the quantity demanded and P is the price. If the firm's revenue function is given by the equation: ( R = PQ ), what is the firm's marginal revenue function?

Correct A. ( MR = 100 - 2P )

B. ( MR = 2P )

C. ( MR = -2P )

D. ( MR = 100 + 2P )

Correct Answer: A

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Question 19

A consumer's utility function is given by the equation: ( U = 2x + 3y ), where x and y are the quantities of two different goods. If the consumer's budget constraint is given by the equation: ( 2x + 3y = 100 ), what is the consumer's optimal bundle of goods?

Correct A. ( x = 20, y = 30 )

B. ( x = 30, y = 20 )

C. ( x = 40, y = 10 )

D. ( x = 10, y = 40 )

Correct Answer: A

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Question 20

A firm's production function is given by the equation: ( Q = 10K^{rac{1}{2}}L^{rac{1}{2}} ), where Q is the quantity produced, K is the capital stock, and L is the labor force. If the firm's capital stock increases by 20% and the labor force remains constant, what is the percentage change in the quantity produced?

A. 10%

Correct B. 20%

C. 30%

D. 40%

Correct Answer: B

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Question 21

In a perfectly competitive market, the supply curve is horizontal and the demand curve is downward-sloping. If the market price is ₦100, and the firm's marginal revenue is ₦80, what is the firm's marginal cost?

A. ₦60

Correct B. ₦80

C. ₦100

D. ₦120

Correct Answer: B

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Question 22

A firm is considering investing in a new project. The project has a net present value (NPV) of ₦1,000,000, and the firm's cost of capital is 10%. What is the internal rate of return (IRR) of the project?

A. 5%

Correct B. 10%

C. 15%

D. 20%

Correct Answer: B

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Question 23

A company has a warehouse with a capacity of 10,000 units. The company receives an order for 8,000 units. If the company uses a first-in-first-out (FIFO) inventory system, what is the cost of the units shipped to the customer?

Correct A. ₦80,000

B. ₦90,000

C. ₦100,000

D. ₦110,000

Correct Answer: A

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Question 24

A firm is considering entering a new market. The firm's marketing manager estimates that the market size is 100,000 units, and the firm's market share is 20%. What is the firm's sales revenue?

A. ₦20,000,000

B. ₦25,000,000

Correct C. ₦30,000,000

D. ₦35,000,000

Correct Answer: C

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Question 25

A company has a production process that requires 2 hours of labor and 1 hour of machine time. If the labor cost is ₦50 per hour and the machine cost is ₦75 per hour, what is the total cost of producing 10 units?

A. ₦1,500

B. ₦2,000

Correct C. ₦2,500

D. ₦3,000

Correct Answer: C

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