POST UTME UI 2025 Commerce | Objective

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Question 1
A firm's cost function is given by C = 2L + 3K, where C is cost, L is labor, and K is capital. If the firm wants to minimize its cost while producing 100 units of output, and the wage rate is ₦50 per hour, what is the optimal level of capital?
A. ₦1,000
B. ₦1,500
C. ₦2,000
D. ₦2,500
Question 2
A company is considering the introduction of a new product line. The product has a high fixed cost of ₦50,000 and a variable cost of ₦10 per unit. The selling price of the product is ₦20 per unit. Using the high-low method, what is the contribution margin per unit?
A. ( ext{Contribution margin} = 20 - 10 = 10 )
B. ( ext{Contribution margin} = 20 - 5 = 15 )
C. ( ext{Contribution margin} = 20 - 10 = 10 )
D. ( ext{Contribution margin} = 20 - 5 = 15 )
Question 3
A company is considering two different transportation options for shipping goods from one location to another. Option A costs ₦1,000 per unit and takes 5 days to deliver, while Option B costs ₦500 per unit and takes 10 days to deliver. If the company needs to ship 100 units of goods, which option should it choose?
A. Option A, because it is cheaper.
B. Option B, because it is faster.
C. Option A, because it has a lower total cost.
D. Option B, because it has a lower total cost.
Question 4
A firm's transportation costs are affected by the mode of transportation used. Which of the following is a key factor influencing transportation costs?
A. Distance
B. Weight
C. Speed
D. Fuel efficiency
Question 5
A firm's revenue function is given by R = 2Q^2 - 5Q + 10, where R is revenue and Q is output. If the firm produces 10 units of output, what is the marginal revenue?
A. ₦20
B. ₦30
C. ₦40
D. ₦50
Question 6
A firm is considering the use of a transportation management system (TMS) to optimize its logistics operations. Which of the following is a key feature of a TMS?
A. Automated routing and scheduling of transportation
B. Real-time tracking and monitoring of shipments
C. Integration with warehouse management systems (WMS)
D. Optimization of transportation modes and carriers
Question 7
A company is considering two marketing strategies: one that focuses on social media advertising and another that focuses on influencer marketing. If the company has a limited budget of ₦500,000, which strategy would you recommend?
A. Social media advertising
B. Influencer marketing
C. Both social media advertising and influencer marketing
D. Neither social media advertising nor influencer marketing
Question 8
A bank has a 5% interest rate on its savings account. If a customer deposits ₦10,000, how much interest will the customer earn in one year?
A. ₦500
B. ₦500
C. ₦500
D. ₦500
Question 9
A company is considering two different production processes for a new product. Process A requires an initial investment of ₦1,000,000 and produces 100 units of the product per day, while Process B requires an initial investment of ₦500,000 and produces 50 units of the product per day. If the company expects to produce the product for 5 years, which process should it choose?
A. Process A, because it produces more units of the product per day.
B. Process B, because it requires a lower initial investment.
C. Process A, because it has a higher total revenue over the 5-year period.
D. Process B, because it has a lower total cost over the 5-year period.
Question 10
A firm's production process involves the use of specialized machinery. Which of the following is a key advantage of this approach?
A. Increased efficiency
B. Improved product quality
C. Enhanced employee skills
D. Better resource utilization
Question 11
A consumer is considering purchasing a product that costs ₦5,000. The consumer has a budget of ₦10,000 and has already spent ₦3,000 on other products. If the consumer expects to receive a 10% discount on the product, how much will they pay?
A. ₦4,500
B. ₦4,000
C. ₦4,500
D. ₦4,000
Question 12
The concept of 'just-in-time' inventory management is closely related to which of the following principles of supply chain management?
A. Economies of scale
B. Global sourcing
C. Total quality management
D. Total cost leadership
Question 13
A sole trader has a business income of ₦2,000,000 and expenses of ₦800,000. What is the sole trader's profit?
A. ₦1,200,000
B. ₦1,200,000
C. ₦1,200,000
D. ₦1,200,000
Question 14
A firm is considering the use of a warehouse management system (WMS) to optimize its inventory management. Which of the following is a key feature of a WMS?
A. Automated tracking and monitoring of inventory levels
B. Real-time reporting and analytics
C. Integration with enterprise resource planning (ERP) systems
D. Optimization of transportation and logistics
Question 15
A consumer protection agency has received complaints about a company's unfair business practices. Which of the following is a key responsibility of the agency?
A. Investigating consumer complaints
B. Providing consumer education
C. Enforcing business regulations
D. Mediating consumer disputes

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