POST UTME LASU 2024 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
Correct A. diminishing returns
B. marginal utility
C. opportunity cost
D. law of supply

Correct Answer: A

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

Correct Answer: D

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Question 3
The diagram below shows the demand and supply curves for a perfectly competitive market. What is the equilibrium price and quantity?
Correct A. ₦100, 100 units
B. ₦50, 50 units
C. ₦200, 200 units
D. ₦500, 500 units

Correct Answer: A

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Question 4
A firm's marginal cost is given by the equation ( MC = 2 + 3x ). If the firm produces 5 units, what is the total cost?
A. ₦25
B. ₦30
Correct C. ₦35
D. ₦40

Correct Answer: C

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Question 5
A firm's revenue is given by the equation ( R = 100x - 2x^2 ). If the firm produces 10 units, what is the marginal revenue?
A. ₦80
B. ₦90
Correct C. ₦100
D. ₦110

Correct Answer: C

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Question 6
A company is considering the introduction of a new product line. The product's demand is expected to follow a normal distribution with a mean of 500 units and a standard deviation of 100 units. If the company wants to ensure that at least 90% of the demand is met, what is the minimum number of units that should be produced?
A. 600
B. 700
Correct C. 800
D. 900

Correct Answer: C

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Question 7
A firm is considering the introduction of a new product. The product's production cost is ₦500 per unit, and the selling price is ₦750 per unit. If the firm wants to make a profit of ₦100 per unit, what is the minimum number of units that should be produced?
A. 100
B. 200
Correct C. 300
D. 400

Correct Answer: C

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Question 8
A company is considering the introduction of a new product line. The product's demand is expected to follow a normal distribution with a mean of 500 units and a standard deviation of 100 units. If the company wants to ensure that at least 95% of the demand is met, what is the minimum number of units that should be produced?
A. 650
B. 700
Correct C. 750
D. 800

Correct Answer: C

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Question 9
A firm is considering the introduction of a new product. The product's production cost is ₦600 per unit, and the selling price is ₦900 per unit. If the firm wants to make a profit of ₦200 per unit, what is the minimum number of units that should be produced?
A. 150
B. 200
Correct C. 250
D. 300

Correct Answer: C

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Question 10
A company is considering the introduction of a new product line. The product's demand is expected to follow a normal distribution with a mean of 400 units and a standard deviation of 80 units. If the company wants to ensure that at least 90% of the demand is met, what is the minimum number of units that should be produced?
A. 450
B. 500
Correct C. 550
D. 600

Correct Answer: C

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Question 11
In a market with perfect competition, the demand curve is downward sloping and the supply curve is upward sloping. What is the equilibrium price and quantity of the product?
A. (P = 10, Q = 100)
Correct B. (P = 20, Q = 50)
C. (P = 30, Q = 200)
D. (P = 40, Q = 150)

Correct Answer: B

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Question 12
A company has a sole proprietorship business with an initial investment of ₦100,000. The business generates a profit of ₦50,000 in the first year. What is the owner's equity at the end of the first year?
Correct A. ₦150,000
B. ₦120,000
C. ₦110,000
D. ₦130,000

Correct Answer: A

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Question 13
A consumer protection agency receives a complaint from a customer who was sold a defective product. The agency investigates and finds that the product was indeed defective. What is the agency's next step?
A. Issue a warning to the manufacturer
Correct B. Order the manufacturer to recall the product
C. Compensate the customer for the defective product
D. Close the case and take no further action

Correct Answer: B

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Question 14
A company is considering exporting its products to a foreign market. What is the first step the company should take?
Correct A. Conduct market research to identify potential customers
B. Develop a marketing strategy to promote the products
C. Establish a distribution network to deliver the products
D. Negotiate with a foreign partner to import the products

Correct Answer: A

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Question 15
A company has a joint venture with a foreign partner to produce a new product. The company's share of the profits is 60%. If the company's revenue from the product is ₦1,000,000, what is the company's share of the profits?
Correct A. ₦600,000
B. ₦400,000
C. ₦500,000
D. ₦700,000

Correct Answer: A

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Question 16
A company is considering exporting its products to a foreign market. Which of the following is a major advantage of exporting?
Correct A. Increased revenue
B. Reduced competition
C. Improved brand image
D. Enhanced market research

Correct Answer: A

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Question 17
A firm is considering investing in a new warehouse. Which of the following is a key factor to consider when evaluating the feasibility of the investment?
A. Initial investment cost
Correct B. Expected return on investment
C. Warehouse location
D. Market demand

Correct Answer: B

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Question 18
A company is considering using a third-party logistics provider to manage its supply chain. Which of the following is a key benefit of using a third-party logistics provider?
A. Reduced transportation costs
B. Improved inventory management
C. Enhanced customer service
Correct D. Increased flexibility

Correct Answer: D

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Question 19
A firm is considering purchasing insurance to protect against business risks. Which of the following is a key type of insurance that a firm may consider?
A. Liability insurance
B. Property insurance
Correct C. Business interruption insurance
D. Workers' compensation insurance

Correct Answer: C

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Question 20
A company is considering expanding its operations to a new market. Which of the following is a key factor to consider when evaluating the feasibility of the expansion?
Correct A. Market size and growth rate
B. Competitor analysis
C. Regulatory environment
D. Supply chain management

Correct Answer: A

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Question 21
A company is considering two marketing strategies to promote its new product. Strategy A involves a high upfront cost of ₦1,500,000 but is expected to generate ₦3,000,000 in revenue over the first year. Strategy B has a lower upfront cost of ₦500,000 but is expected to generate ₦2,000,000 in revenue over the first year. Which strategy should the company choose?
Correct A. Strategy A
B. Strategy B
C. Both strategies are equally viable
D. Neither strategy is viable

Correct Answer: A

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Question 22
A firm is considering exporting its product to a foreign market. The firm has estimated the following costs and revenues for the export operation: Fixed costs: ₦200,000; Variable costs: ₦500 per unit; Selling price: ₦1,200 per unit. If the firm expects to sell 10,000 units, what is the minimum price it should charge for each unit to break even?
Correct A. ₦1,100
B. ₦1,200
C. ₦1,300
D. ₦1,400

Correct Answer: A

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Question 23
A company is planning to transport goods from Lagos to Abuja. The company has two options: Option A, which involves hiring a truck for ₦50,000 and paying ₦0.50 per kilometer; Option B, which involves hiring a truck for ₦30,000 and paying ₦0.75 per kilometer. If the distance between Lagos and Abuja is 800 kilometers, which option should the company choose?
Correct A. Option A
B. Option B
C. Both options are equally viable
D. Neither option is viable

Correct Answer: A

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Question 24
A consumer protection agency has received a complaint from a consumer who purchased a product online. The product was not as described, and the consumer is seeking a refund. The agency has investigated the matter and found that the seller had breached the consumer protection laws. What should the agency do?
Correct A. Order the seller to refund the consumer's money
B. Order the seller to replace the product
C. Close the case as there is no evidence of a breach
D. Refer the case to the police

Correct Answer: A

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Question 25
A company is considering setting up a sole proprietorship business. What are the advantages of this type of business?
A. Easy to set up and manage
B. Limited liability for the owner
C. Flexibility in decision-making
Correct D. All of the above

Correct Answer: D

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