A Manufacturer with Exclusive Rights to a Sophisticated New Industrial $60 - \frac { x } { 5 } + \frac { y } { 20 }$

Short Answer

A manufacturer with exclusive rights to a sophisticated new industrial machine is planning to sell a limited number of the machines to both foreign and domestic firms. The price the manufacturer can expect to receive for the machines will depend on the number of machines made available. (For example, if only a few of the machines are placed on the market, competitive bidding among prospective purchasers will tend to drive the price up.) It is estimated that if the manufacturer supplies x machines to the domestic market and y machines to the foreign market, the machines will sell for $60 - \frac { x } { 5 } + \frac { y } { 20 }$ thousand dollars apiece at home and for $50 - \frac { y } { 10 } + \frac { x } { 20 }$ thousand dollars apiece abroad. If the manufacturer can produce the machines at a cost of $45,000 apiece, how many should be supplied to each market to generate the largest possible profit?