POST UTME LAUTECH 2025 Commerce | Objective

Practice these randomly selected questions to test your readiness.

Question 1
A company has a policy of paying its employees a 10% bonus on their monthly salary. If an employee's monthly salary is ₦60,000, what is the bonus amount?
A. ₦6,000
B. ₦6,500
C. ₦7,000
D. ₦7,500
Question 2
A company is considering two marketing strategies: Strategy A and Strategy B. Strategy A has a probability of success of 0.6 and a probability of failure of 0.4. Strategy B has a probability of success of 0.7 and a probability of failure of 0.3. If the company wants to maximize its expected profit, which strategy should it choose?
A. Strategy A
B. Strategy B
C. Both strategies have the same expected profit
D. Neither strategy has a higher expected profit
Question 3
A consumer purchases a product for ₦1,000 and sells it for ₦1,200. Determine the consumer's profit.
A. ₦200
B. ₦300
C. ₦400
D. ₦500
Question 4
A firm's demand for a variable input, such as labor, is said to be perfectly inelastic if the quantity of the input demanded does not change in response to changes in the wage rate. If the firm's demand for labor is perfectly inelastic, then the firm's marginal revenue product of labor is equal to the
A. marginal cost of labor
B. marginal revenue product of labor
C. average product of labor
D. marginal factor cost of labor
Question 5
A firm produces two goods, A and B, using two inputs, labor (L) and capital (K). The production function for good A is given by Q_A = 2L^0.5 * K^0.5, while the production function for good B is given by Q_B = 3L^0.2 * K^0.8. If the firm has 100 units of labor and 150 units of capital, and the prices of labor and capital are ₦50 and ₦100 respectively, determine the optimal mix of goods A and B to produce, given that the firm's objective is to maximize profits.
A. Produce 50 units of good A and 50 units of good B
B. Produce 75 units of good A and 25 units of good B
C. Produce 25 units of good A and 75 units of good B
D. Produce 100 units of good A and 0 units of good B
Question 6
A firm's marginal revenue product is the change in its total revenue resulting from a one-unit change in the quantity of a variable input, such as labor. If the firm's marginal revenue product of labor is 100, and the wage rate is 80, then the firm should
A. hire more labor
B. hire less labor
C. not hire any labor
D. fire some labor
Question 7
A company has a policy of paying its employees a 5% commission on their sales. If an employee's sales are ₦100,000, what is the commission amount?
A. ₦5,000
B. ₦5,500
C. ₦6,000
D. ₦6,500
Question 8
A firm's production function is given by Q = 2L^0.5K^0.5, where Q is the output, L is the labor and K is the capital. If the firm wants to increase its output by 20% and the labor is increased by 10%, what is the percentage increase in capital required?
A. 5%
B. 10%
C. 15%
D. 20%
Question 9
A company is considering launching a new product line. The product has a high demand in the market, but the production costs are expected to be high. The company's marketing manager has suggested that the product be launched in a limited quantity to test the market response. However, the financial controller is concerned that the high production costs may lead to a loss. Which of the following marketing strategies is most appropriate for this situation?
A. Test Market Strategy
B. Product Line Extension
C. Market Penetration Strategy
D. Market Development Strategy
Question 10
A firm has a production function Q = 2L^0.5 * K^0.5. If the firm has 100 units of labor and 150 units of capital, determine the firm's output.
A. 50
B. 75
C. 100
D. 125
Question 11
A company uses a transportation mode that has a fixed cost of ₦10,000 and a variable cost of ₦50 per unit. If the company transports 500 units, determine the total cost of transportation.
A. ₦25,000
B. ₦30,000
C. ₦35,000
D. ₦40,000
Question 12
A company has a budget of ₦1,500,000 to spend on advertising its new product. If the cost of advertising on television is ₦500,000 and the cost of advertising on radio is ₦300,000, what is the maximum amount the company can spend on advertising on both television and radio?
A. ₦1,000,000
B. ₦1,200,000
C. ₦1,300,000
D. ₦1,500,000
Question 13
A company is considering setting up a sole trade business. The company's owner-manager has a good understanding of the market and has identified a niche area where the company can offer a unique product or service. However, the owner-manager is concerned about the risks associated with a sole trade business. Which of the following is a key advantage of a sole trade business?
A. Flexibility
B. Limited liability
C. Tax benefits
D. Easy to set up
Question 14
In a perfectly competitive market, the demand curve for a firm's product is its
A. marginal revenue curve
B. marginal cost curve
C. average revenue curve
D. average cost curve
Question 15
A firm's production function is given by the equation Q = 2L^2 + 5L + 10, where Q is the quantity of output and L is the quantity of labor. If the firm's wage rate is 20 per hour, and the firm wants to maximize its profit, then it should hire
A. 10 units of labor
B. 20 units of labor
C. 30 units of labor
D. 40 units of labor

Master the Exam!

You've seen a preview, but there are thousands more questions plus AI tutor to break down complex solutions.

Unlock Full Access Available for Android & Windows
Help others prepare! Share this practice hub: