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For a monopolist market, the demand law is p = (6 – x)2 and marginal cost is x + 14. Find the consumers’ surplus.

a) The manufacturing cost of an item consists of Sh. 10,000 as overheads; material cost Sh. 4 per item and the labour cost Sh. x2/90 for x items produced. Find how many items will be

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produced to have the average cost minimum. (6marks)

b) For a monopolist market, the demand law is p = (6 – x)2 and marginal cost is x + 14. Find the consumers’ surplus. (7marks)

c) Jean purchases 3 pens, 2 exercise books and 1 pencil and pays Sh. 41. From the same shop, Joan purchases 2 pens, 1 exercise book and 2 pencils and pays Sh. 29, while Jaedon purchases 2 pens, 2 exercise books and 2 pencils and pays Sh. 44. Translate the problem into a system of equations. Solve the system of equations by matrix method and hence find the

cost of 1 pen, 1 exercise book and 1 pencil.


 

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The post For a monopolist market, the demand law is p = (6 – x)2 and marginal cost is x + 14. Find the consumers’ surplus. appeared first on Wise Papers.

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