POST UTME NILE UNIVERSITY 2025 Commerce | Objective

Practice these randomly selected questions to test your readiness.

Question 1
A firm's revenue function is given by R = 100p - 2p^2, where p is the price per unit. If the firm's current price is p = 10, what is the firm's current revenue?
A. 800
B. 900
C. 1000
D. 1100
Question 2
A consumer purchases a product with a price of ₦10,000 and a 10% discount. If the consumer pays ₦9,000, what is the amount of the discount?
A. ₦1,000
B. ₦1,500
C. ₦2,000
D. ₦2,500
Question 3
A company is considering investing in a new product line. The product has a high level of market demand, but the production costs are also high. What is the primary factor that will determine the success of the product?
A. Market demand
B. Production costs
C. Marketing strategy
D. Distribution channels
Question 4
A firm specializes in producing only one product. This is an example of _______ specialization.
A. pure
B. imperfect
C. perfect
D. monopolistic
Question 5
A sole trader is considering the purchase of a new piece of equipment for their business. The equipment costs ₦200,000 and is expected to last for 5 years. The sole trader expects to save ₦50,000 per year from the use of the equipment. What is the payback period of the equipment?
A. 2 years
B. 3 years
C. 4 years
D. 5 years
Question 6
In a perfectly competitive market, the supply curve is upward-sloping because of the law of increasing costs. However, in a monopolistically competitive market, the supply curve is also upward-sloping, but for a different reason. What is the primary reason for the upward-sloping supply curve in a monopolistically competitive market?
A. The law of increasing costs
B. The desire to maximize profits
C. The fear of entry by new firms
D. The presence of advertising expenses
Question 7
In a warehouse with a storage capacity of 10,000 units, the stock level is currently at 8,000 units. If the rate of stock depletion is 5% per week, and the warehouse manager wants to maintain a safety stock of 20% of the storage capacity, what is the minimum number of units that should be ordered to meet the safety stock requirement?
A. 1,000
B. 2,000
C. 3,000
D. 4,000
Question 8
A firm is considering outsourcing its production to a foreign country. What are the potential advantages of outsourcing?
A. Lower labor costs, improved quality, and increased flexibility
B. Lower labor costs, improved quality, and increased market share
C. Lower labor costs, improved quality, and increased market share
D. Lower labor costs, improved quality, and increased flexibility
Question 9
A firm's profit function is given by Φ = R - C, where R is revenue and C is cost. If the firm's current revenue and cost are R = 1000 and C = 400, respectively, what is the firm's current profit?
A. 200
B. 300
C. 400
D. 500
Question 10
A bank provides a loan to a customer at an interest rate of 10% per annum. If the customer borrows ₦100,000 for 5 years, how much will the customer pay in total?
A. ₦125,000
B. ₦130,000
C. ₦135,000
D. ₦140,000
Question 11
A company is considering the introduction of a new product line. The marketing manager has identified two potential target markets: Market A and Market B. Market A has a larger population, but Market B has a higher disposable income. Which market segmentation strategy would be most appropriate for this company?
A. Demographic segmentation
B. Geographic segmentation
C. Psychographic segmentation
D. Behavioral segmentation
Question 12
A life insurance policy has a premium of ₦50,000 per year. If the policyholder wants to pay the premium in 10 equal installments, what is the amount of each installment?
A. ₦5,000
B. ₦5,500
C. ₦6,000
D. ₦6,500
Question 13
A company's foreign trade policy is primarily influenced by its
A. Government
B. Market forces
C. Technological advancements
D. Environmental concerns
Question 14
A firm's cost function is given by C = 2L + 3K, where L is labor and K is capital. If the firm's current labor and capital inputs are L = 4 and K = 9, respectively, what is the firm's current cost?
A. 20
B. 30
C. 40
D. 50
Question 15
A company uses a transportation mode that has a fixed cost of ₦50,000 per trip and a variable cost of ₦10,000 per unit. If the company transports 1,000 units per trip, what is the total cost of transportation for a 5-trip journey?
A. ₦550,000
B. ₦600,000
C. ₦650,000
D. ₦700,000

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