Question
Bob's Burgers usually closes on Sundays at 2PM. They are debating whether to extend their hours. Bob would have to hire a worker for those
Bob's Burgers usually closes on Sundays at 2PM. They are debating whether to extend their hours. Bob would have to hire a worker for those extra hours at a wage of $15 per hour. On average, he also incurs other cost that is 30% of revenue. The table below shows the forecasted revenue they'll make for the extra hours they open. For example: after 1 extra hour, their Forecasted Revenue will be $64; after 2 extra hours, their Forecasted Revenue will be $96; etc. Using Marginal Analysis, how much would Bob's Burger profit if they chose to open extra hours? (note: Profit equals Revenue minus Cost)
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