KENYATTA UNIVERSITY DEPARTMENT OF MANAGEMENT SCIENCE BMS 840: QUANTITATIVE TECHNIQUES DVSOL ASSIGNMENT MARCH 2017 Question One An economy has three...

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i)                   Determine the technical coefficient matrix                                                        (2 marks)

ii)                 The leontiff inverse matrix                                                                                 (5 marks)

iii)   If the demand from sector 1 increases by 10%, that of sector 2 decreases by 20% and sector 3 remains the same, find the total output from each sector and distribute the results amongst the users                                                                                               (3 marks)

Question Two

Given the marginal revenue function  and the marginal cost function

. The total cost of producing 10 units is kshs.700. Determine:

i)       The total cost function                                                                          (3 marks)

ii)     The profit function                                                                                (3 marks)

iii)   The level of production at which profit is maximum                            (4 marks)