1 . Anthony Gan works as a marketing manager at Beaut Service Sdn. Bhd. Before he joined this company, he was a manager with a small firm earning RM26,000 per annum. Presently, Anthony is considering implementing two projects, Project X and Project Y. Assume both projects required equipments which can be leased at a cost of RM8,000 per annum and he must pay RM1, 100 for insurance and RM600 for supplies and materials. (a) Calculate the total accounting cost and economic cost for both projects (b) If both projects yield total revenue of RM68,000 per annum, calculate the accounting profit and economic profit earned by the firm . (c) Assume that Project X and Project Y yield total benefit as shown in the table below and the total cost incurred for Project X is RM40 per level activity and Project Y is RM50 per level activity Level of activity Total Benefit of Project X Total Benefit of Project Y 140 100 280 190 380 270 QUEWN 460 330 520 380 550 410 (i) If the Board of Directors places a budget constraint of RM300 on both projects, how should Anthony allocate this budget in order to maximise the total benefit ? (ii) If Anthony has budget of RM180 and currently running 2 level of Project X and 2 level of Project Y, is he making a correct decision? If not, what should he do? (iii) If the marketing department's budget increased from RM300 to RM400 , how should Anthony allocate this budget ? 2. Discuss whether high level of output is necessary for minimum efficient scale 3. Using an appropriate diagram, describe the THREE (3) types of returns to scale. 4. Determine whether the following production functions exhibit constant , increasing , or decreasing returns to scale (a) Q = 0.5X + 2Y + 40Z (b) Q = 3L + 10K + 500