Amanufacturer sells two goods, one at a price of $1000 a unit and the other at a price of $16,500 a unit. a quantity q1 of the first good and q2 of the second good are sold at a total cost of $5000 to the manufacturer. (a) express the manufacturer's profit, π (in thousands of dollars), as a function of q1 and q2.

manufacturing cost = $16.5 q₂ + $1 q₁ - $ 5

Explanation:

given,

one unit price of  first good is = $ 1000

one unit price of second good is = $ 16500

quantity of the first good = q₁

quantity of the second good = q₂                      

total cost to the manufacturer =  $ 5000

revenue from  good one = $1000 q₁                    

revenue from second good = $16500 q₂                      

manufacturing cost = total revenue - total manufacturing cost

manufacturing cost = $16500 q₂ + $1000 q₁ - $ 5000        

but in the question we have to answer in thousands of dollar

so, divide the result by 1000                  

manufacturing cost = $16.5 q₂ + $1 q₁ - $ 5                

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