Answer all questions:

1.Cost Function

Cost function of the enterprise "BA-BU-CFA" is

TC = 1,000 + 25Q + 0.8Q²

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

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

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

2.Cost-Volume-Profit Analysis

A company "BA-BU-CBC" 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 "BA-BC-MBA" is going to launch a new business campaign. BA-BU-MBA 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

5.Risk and Uncertainty

There are two decisions as follows:

Decision	Probability	Profit
J	x	$8,000
1-x	$4,000
K	2x	$6,000
1-2x	$5,000

5.1 Find x that makes a certainty equivalent between Decisions J and K

5.2 If x is greater than the calculated value of 5.1, which Decision should a manager choose?

5.3 If x is less than the calculated value of 5.1, which Decision should a manager choose?