POST UTME MOUNTAIN TOP UNIVERSITY 2021 Commerce | Objective
Practice these randomly selected questions to test your readiness.
Question 1
A firm specializes in producing a single product. This specialization allows the firm to achieve economies of scale in production. However, it also means that the firm is vulnerable to fluctuations in demand for that product. What is the name of this type of risk that the firm faces?
Question 2
A consumer has a utility function given by U = 2x + 3y, where x and y are the quantities of two goods consumed. If the prices of the two goods are ₦50 and ₦75 respectively, and the consumer has a budget of ₦300, what is the optimal combination of x and y that maximizes utility?
Question 3
A consumer has a utility function given by U = 2x + 3y, where x and y are the quantities of two goods consumed. If the prices of the two goods are ₦50 and ₦75 respectively, and the consumer has a budget of ₦300, what is the optimal combination of x and y that maximizes utility?
Question 4
A company is considering two different types of insurance policies: term life insurance and whole life insurance. The term life insurance policy costs ₦50,000 per year and provides a death benefit of ₦1,000,000. The whole life insurance policy costs ₦100,000 per year and provides a death benefit of ₦2,000,000. What is the difference in cost between the two policies over a 10-year period?
Question 5
A company has a warehouse with a capacity of 1000 units. It currently has 500 units in stock. If it receives a shipment of 300 units, what is the new stock level?
Question 6
A firm's cost function is given by C(x) = 2x^2 + 5x, where x is the number of units produced. If the firm produces 4 units, what is its total cost?
Question 7
A company is considering investing in a new project. The project has a net present value (NPV) of ₦750,000 and a payback period of 7 years. What is the internal rate of return (IRR) of the project?
Question 8
In a perfectly competitive market, what is the relationship between the marginal revenue product of labor and the marginal factor cost of labor?
Question 9
A company is considering two different modes of transportation for its goods: road and rail. The cost of transporting goods by road is ₦150 per kilometer, while the cost of transporting goods by rail is ₦120 per kilometer. If the company needs to transport 500 kilometers of goods, what is the total cost of transportation by road?
Question 10
A firm is considering exporting its products to a foreign market. The firm has a production capacity of 10,000 units per month and a selling price of ₦500 per unit. The firm's costs include a fixed cost of ₦100,000 per month and a variable cost of ₦50 per unit. What is the firm's profit per unit of production?
Question 11
A company is considering the introduction of a new product line. The product has a high fixed cost of production, but a low variable cost. The company expects to sell 1000 units of the product per month at a price of ₦500 per unit. Calculate the contribution margin per unit and the break-even point in units.
Question 12
A firm's cost function is given by C(x) = 2x^2 + 5x, where x is the number of units produced. If the firm produces 4 units, what is its total cost?
Question 13
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 sells 10 units, what is the marginal revenue?
Question 14
A company is considering investing in a new project. The project has a net present value (NPV) of ₦1,000,000 and a payback period of 10 years. What is the internal rate of return (IRR) of the project?
Question 15
A company has a production function 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 company increases its labor input from 100 units to 121 units, and its capital input from 100 units to 121 units, by how many percentage points will the quantity produced increase?
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