2. You are hired as a consultant for a local restaurant. It is considering whether to close at 9:00 p.m., or whether to stay open an extra hour (10:00 p.m.). Based on wages and utility bills, the added cost (the marginal cost) of staying open for each additional hour is $200.

a. If the additional revenue (the marginal revenue) during the last hour of operation is $250, what would you recommend? By how much will profit change based on your recommendation?

b. What if the additional revenue were only $100?

c. What would you need to learn about marginal revenue for you to conclude that 9:00 p.m. is the ideal closing time?