A manufacturer sells two products, one at a price of $4000 a unit and the other at a price of $13,000 a unit. A quantity q¹ of the first product and q² of the second product are sold at a total cost of $(4000 + q¹ + q²) to the manufacturer.
(a) Express the manufacturer’s profit, π, as a function of q¹ and q².
(b) Sketch contours of π for π = 10,000, π = 20,000, and π = 30,000 and the break-even curve π = 0.