Each worker at Gallo cork factory costs $12 per hour. The cost of each machine is $20 per day regardless of the number of corks produced

According to John's accountant, which of the following revenue totals will yield his business $50,000 profit?
$105,200

According to an economist, which of the following revenue totals will yield John's business $50,000 economic profit?
$185,700

For a firm, the production function represents the relationship between
quantity of inputs and quantity of output

The marginal product of any input is the
increase in total output obtained from one additional unit of input

Gallo Cork Factory:

Use the information provided in the table above to answer the following 3 questions.
Each worker at Gallo cork factory costs $12 per hour. The cost of each machine is $20 per day regardless of the number of corks produced. If Gallo produces at a rate of 70 corks per hour and operates 8 hours per day, what is Gallo’s total labor cost per day?
$576

Assume Gallo currently employs 5 workers. What is the marginal product of labor when Gallo adds a 6th worker?
15 corks per hour

Gallo cork factory experiences diminishing marginal product of labor with the addition of which worker?
the 6th

Marginal cost tells us the
amount by which total cost rises when output is increased by one unit

Jane's Elegant Earrings produces pairs of earrings for its mail order catalogue business. Each pair is shipped in a separate box. She rents a small room for $150 a week in the downtown business district that serves as her factory. She can hire workers for $275 a week. There are no implicit costs.

Use the information provided above to answer the following 3 questions.
What is the total cost associated with making 890 boxes of earrings per week?
$1,250

During the week of July 4th, Jane doesn't produce any earrings. What are her costs during the week?
$150

One week, Jane earns a profit of $125. If her revenue for the week is $1,100 how many boxes of earrings did she produce?
780