Step 1 :Define the matrix A as the costs for labor and materials for the economy model and the deluxe model in thousands of dollars. The matrix A is \(\begin{bmatrix} 21 & 40 \ 39 & 70 \end{bmatrix}\).
Step 2 :Define the matrix Q as the quantity of each type of house built. The matrix Q is \(\begin{bmatrix} 3 \ 7 \end{bmatrix}\).
Step 3 :Calculate the product of matrices A and Q. The product AQ is \(\begin{bmatrix} 343 \ 607 \end{bmatrix}\).
Step 4 :The first entry of AQ, 343, represents the total cost of labor for 3 economy models and 7 deluxe models in thousands of dollars.
Step 5 :The second entry of AQ, 607, represents the total cost of materials for 3 economy models and 7 deluxe models in thousands of dollars.
Step 6 :Final Answer: Matrix A is \(\boxed{\begin{bmatrix} 21 & 40 \ 39 & 70 \end{bmatrix}}\), Matrix Q is \(\boxed{\begin{bmatrix} 3 \ 7 \end{bmatrix}}\), and Product AQ is \(\boxed{\begin{bmatrix} 343 \ 607 \end{bmatrix}}\). The entries of AQ represent the total cost of labor and materials for 3 economy models and 7 deluxe models in thousands of dollars.