1 . Mr. Hamid Mohammad is planning to pursue MBA studies. Initial inquiry shows that he will have to pay RM 25,000 as tuition fee, buy books for RM 1000, pay for transport RM 500. The MBA study programme will extend over 15 months. Mr Hamid is working now with a salary of RM 2,500 per month.. Being a full time student, he will have to forego the income from his present job for the period of study. Work out the (a) Financial cost, and (b) the Economic Cost of doing MBA (Hint: Identify implicit costs and explicit costs)

2. A firm has the following revenue and cost functions. TR = 60 Q - Q2 TC = Determine the quantity level at which the firm maximizes its total profit. (Hint: use marginal revenue = marginal cost rule)

3. Explain the term price elasticity of demand? How is it measured? What factors influence market demand for products? If the price elasticity is -3 and RM 100 is the marginal cost of product X, what should be the optimal sale price? (Hint: apply the mark-up rule)

4. Write short notes on: a. Law of diminishing returns and the short-run cost curve b. Economies of Scale and the long run cost curve c. New Economies of Globalization