POST UTME MOUNTAIN TOP UNIVERSITY 2020 Commerce | Objective

Practice these randomly selected questions to test your readiness.

Question 1
In a market with perfect competition, the demand curve for a firm's product is given by the equation ( Q = 100 - 2P ). If the firm's marginal revenue (MR) is given by the equation ( MR = 50 - P ), find the equilibrium price and quantity.
A. ( P = 25, Q = 75 )
B. ( P = 50, Q = 50 )
C. ( P = 75, Q = 25 )
D. ( P = 100, Q = 0 )
Question 2
A company uses the just-in-time (JIT) inventory system. Which of the following is a benefit of JIT?
A. Reduced inventory costs.
B. Improved product quality.
C. Increased production efficiency.
D. All of the above.
Question 3
A firm's home market is the domestic market where it operates. What is the primary advantage of operating in a firm's home market?
A. Lower transportation costs
B. Familiarity with local laws and regulations
C. Access to a large customer base
D. Ability to control the market
Question 4
A company's revenue function is given by R = 100P^2, where R is the revenue and P is the price. If the company increases its price from ₦10 to ₦15, by how much will its revenue increase?
A. ₦100
B. ₦200
C. ₦300
D. ₦400
Question 5
A company is considering the establishment of a new business unit. Which of the following is a key advantage of establishing a new business unit?
A. Increased autonomy and decision-making power
B. Improved resource allocation and utilization
C. Enhanced innovation and risk-taking
D. Reduced administrative burden through outsourcing
Question 6
A firm is considering entering a new market. Which of the following is a key consideration for the firm?
A. The level of competition in the market
B. The size of the market
C. The growth potential of the market
D. All of the above
Question 7
A company exports goods worth ₦1,000,000 to a foreign country. If the exchange rate is 1 USD = 360 Naira, how much is the export worth in USD?
A. 2,778.57
B. 2,500
C. 3,000
D. 3,500
Question 8
A consumer protection law states that a company must provide a 30-day warranty for all products. If a customer buys a product on January 1st, what is the last date for warranty claims?
A. February 1st
B. February 28th
C. March 1st
D. March 31st
Question 9
A warehouse has a storage capacity of 10,000 units. If it currently has 8,000 units and receives a shipment of 2,000 units, what is the new storage capacity?
A. 10,000
B. 12,000
C. 8,000
D. 6,000
Question 10
A warehouse has a storage capacity of 10,000 units. If the warehouse is currently storing 8,000 units, what is the percentage of the warehouse's capacity that is currently being used?
A. 50%
B. 60%
C. 80%
D. 90%
Question 11
A company's sole trader has an annual income of ₦1,500,000 and expenses of ₦800,000. If the company's tax rate is 20%, calculate the sole trader's net profit.
A. ₦250,000
B. ₦300,000
C. ₦350,000
D. ₦400,000
Question 12
A bank's cash reserve ratio is 20%. If the bank has a total deposit of ₦10,000,000, how much cash must it reserve?
A. ₦2,000,000
B. ₦1,500,000
C. ₦2,500,000
D. ₦3,000,000
Question 13
A consumer purchases a product with a price tag of ₦1,500. If the consumer pays with a ₦500 note and ₦1,000 in coins, what is the change due to the consumer?
A. ₦0
B. ₦250
C. ₦500
D. ₦1,000
Question 14
A company's marketing strategy involves the use of social media platforms to promote its products. The company has the following data on its social media presence:
A. The company should increase its social media advertising budget.
B. The company should decrease its social media advertising budget.
C. The company should maintain its current social media advertising budget.
D. The company should switch to a different marketing strategy.
Question 15
A firm's production function is given by Q = 100L^0.5K^0.25, where Q is the quantity produced, L is the labor input, and K is the capital input. If the firm 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%
B. 15%
C. 20%
D. 25%

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