1. Cost Function Cost function of an enterprise

"BU-CT" is TC = 1,000 + 25Q + 0.8Q2

where TC is total cost (million baht), and Q is unit of output (1,000 units)

1.1 Calculate TC, AC and MC at the production of 100,000 units of output

1.2 Based on 1.1, does BU-CT experience economy or diseconomy of scale?

2. Cost-Volume-Profit Analysis A company "BU-BB" sells a mobile phone at $1,200 each. A cost of production is $700 each. The fixed cost of this company is $800,000.

2.1 Calculate the break event point

2.2 Find out the quantity that this company should product to earn $200,000 profit

3. Profit Maximization An enterprise "BU-Ent" is going to launch a new business campaign. BU-Ent has a demand function and a cost equation as follows: P = 3,000 - 4Q TC = 20,000 + 40Q

3.1 Calculate quantity (Q), price (P), total revenue (TR) and total profit () for the profit maximizing level of output.

3.2 Calculate quantity (Q), price (P), total revenue (TR) and total profit () for the revenue maximizing level of output.

4. Risk and Uncertainty There are three decisions as follows: Decision Probability Profit A 1 $5,000 B x $8,000 1-x $500 C y $10,000 1-y $100

4.1 Find x that makes a certainty equivalent between Decisions A and B

4.2 Find y that makes a certainty equivalent between Decisions A and C