POST UTME WELLSPRING UNIVERSITY 2019 Commerce | Objective

Practice these randomly selected questions to test your readiness.

Question 1
A firm is considering two production technologies: one that requires an initial investment of ₦10 million and another that requires an initial investment of ₦20 million. The first technology has a higher marginal cost but a lower fixed cost. Which technology should the firm choose if it expects to produce 10,000 units?
A. The firm should choose the technology with the higher fixed cost
B. The firm should choose the technology with the lower marginal cost
C. The firm should choose the technology with the higher marginal cost
D. The firm should choose the technology with the lower fixed cost
Question 2
A firm's demand function is given by Q = 100 - 2P. If the firm's marginal revenue function is MR = 200 - 4Q, what is the firm's optimal price?
A. ₦20
B. ₦30
C. ₦40
D. ₦50
Question 3
A firm produces two products, A and B, using two inputs, labor and capital. The production function for product A is given by ( Q_A = 2L + 3K ), and for product B is given by ( Q_B = 3L + 2K ). If the firm has 10 units of labor and 8 units of capital, what is the total output?
A. 20 units
B. 30 units
C. 40 units
D. 50 units
Question 4
A company has a cash reserve of ₦1,500,000 and wants to invest in a project with a required return of 12% per annum. If the project has a beta of 1.2 and the risk-free rate is 6% per annum, calculate the cost of equity using the Capital Asset Pricing Model (CAPM).
A. ( r_e = 6% + 1.2 imes (12% - 6%) )
B. ( r_e = 6% + 1.2 imes (12% + 6%) )
C. ( r_e = 6% + 1.2 imes (12% imes 6%) )
D. ( r_e = 6% + 1.2 imes (12% div 6%) )
Question 5
A bank's reserve requirement is 10%. If the bank has ₦100,000 in reserves, how much in new deposits can it accept?
A. ₦900,000
B. ₦1,000,000
C. ₦1,100,000
D. ₦1,200,000
Question 6
A company is considering implementing a just-in-time (JIT) inventory system. Which of the following is a potential advantage of JIT?
A. Reduced inventory costs
B. Improved product quality
C. Enhanced customer service
D. Increased production efficiency
Question 7
In a perfectly competitive market, what is the relationship between the marginal revenue product of labor and the market wage?
A. The marginal revenue product of labor is equal to the market wage.
B. The marginal revenue product of labor is greater than the market wage.
C. The marginal revenue product of labor is less than the market wage.
D. The marginal revenue product of labor is unrelated to the market wage.
Question 8
A company's marketing strategy involves creating a sense of urgency among its customers. This approach is an example of which of the following?
A. Scarcity
B. Perceived Value
C. Limited Time Offer
D. Brand Loyalty
Question 9
A sole trader is considering hiring an employee to help with the business. Which of the following is a potential advantage of hiring an employee?
A. Increased productivity
B. Improved product quality
C. Enhanced customer service
D. Reduced business risk
Question 10
In a perfectly competitive market, the law of supply states that as the price of a good increases, the quantity supplied will __________.
A. increase
B. decrease
C. remain constant
D. fluctuate
Question 11
A firm's production function is given by Q = 2L^0.5K^0.5. If the firm wants to produce 16 units of output, and the price of labor is ₦50 per unit, while the price of capital is ₦100 per unit, what is the minimum cost of production?
A. ₦800
B. ₦1000
C. ₦1200
D. ₦1500
Question 12
A firm's production function is given by Q = 2L^0.5K^0.5. If the firm wants to produce 16 units of output, and the price of labor is ₦100 per unit, while the price of capital is ₦200 per unit, then the minimum cost of production is
A. ₦1600
B. ₦2400
C. ₦3200
D. ₦4000
Question 13
A company has a warehouse with a storage capacity of 50,000 units and wants to determine the optimal order quantity using the Economic Order Quantity (EOQ) model. If the cost of holding inventory is 15% per annum and the inventory turnover ratio is 3 times per year, calculate the optimal order quantity.
A. ( EOQ = sqrt{ rac{2 imes 50,000 imes 0.15}{3}} )
B. ( EOQ = sqrt{ rac{2 imes 50,000 imes 0.15}{3 imes 0.15}} )
C. ( EOQ = sqrt{ rac{2 imes 50,000 imes 0.15}{3 imes 0.15 imes 0.15}} )
D. ( EOQ = sqrt{ rac{2 imes 50,000 imes 0.15}{3 imes 0.15 imes 0.15 imes 0.15}} )
Question 14
A consumer has the following utility function: U = x^2 + 2y^2. If the consumer's income is ₦1000, and the prices of good x and good y are ₦50 and ₦75 respectively, what is the consumer's optimal bundle of goods?
A. (10, 5)
B. (15, 3)
C. (20, 2)
D. (25, 1)
Question 15
A firm has a 10% chance of losing ₦10 million and a 90% chance of gaining ₦20 million. What is the expected value of the firm's investment?
A. ₦1 million
B. ₦2 million
C. ₦10 million
D. ₦20 million

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