Mr. Karim is planning to pursue MBA studies. Initial inquiry shows that he will have to pay RM 24,000 as tuition fee, buy books for RM 1,000, and pay for transport RM 1,000. The MBA study programme will extend over 18 months. Mr Karim is working now with a salary of RM 3,000 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: (a) Financial cost, and (b) the Economic Cost of doing MBA (Hint: Identify implicit costs and explicit costs) QUESTION 2 A firm has the following revenue and cost functions. TR = 120 Q- Q TC = 12 Q Q +30 Q + 10 [10 marks] Determine the quantity level at which the firm maximizes its total profit. (Hint: use marginal revenue = marginal cost rule) (Hint: apply the mark-up rule) [10 Marks] QUESTION 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? [10 Marks] QUESTION 4 What is meant by price discrimination? What are the conditions to make price discrimination effective? Discuss your answers with examples from the Airline Industry. [10 Marks]