Walden WMBA6681 Week 3 Discussion

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Walden WMBA6681 Week 3 Discussion

Week 3 Discussion

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?

To prepare for this Discussion, 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.

By Day 3

Post your response to the following:

Differentiate opportunity cost, marginal cost, and relevant
cost, including supportive and illustrative examples in terms of the purposes
for which each cost is used. You can use the scenario of Jennifer’s restaurant
to illustrate your examples.

Analyze the relationship between marginal benefit and
marginal cost, and explain how marginal benefit is measured and how it relates
to marginal cost.

Beyond the scenario of Jennifer’s restaurant, what other
costs must managers address before making decisions? Why?

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