Imagine that you have a friend, Jennifer Jackson, who owns a small family restaurant that opens at night. Jennifer’s restaurant has been open only a few years, and she likes to keep the business small. The popularity of the restaurant has increased, but Jennifer is hesitant extending service to include lunch hours. She has two young children at home, and keeping the restaurant running only in the evenings has been profitable enough and allowed her to keep a sense of balance in her life. And yet, Jennifer feels she is losing an opportunity to expand that may not be available to her in a few years. For Jennifer’s case, what are the different costs factoring into her decision of whether to extend business hours or not?
Consider how to analyze cost concerns, such as opportunity cost, and consider how to determine the cost of alternatives over single and multiple time periods. Also, think about how you would analyze the role of costs in the decision-making process.
Be sure to support your work with specific citations
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