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Jo owns Cluck You!, a food truck specializing in fried chicken and chicken wings. The truck has been very successful and currently generates $500 per
Jo owns Cluck You!, a food truck specializing in fried chicken and chicken wings. The truck has been very successful and currently generates $500 per day in revenue. Jo is considering adding a second truck to the business. She estimates that the second truck would generate $300 per day. However, some of this revenue would be from current customers of the first truck; she estimates that if she opens the second truck, the daily revenue from the first truck would fall to $400 per day. Additionally, Jo estimates that to purchase the second truck, hire and train employees, and get the second truck up and running, she will need to close down the first truck for five (5) days, meaning she will generate $0 revenue for each of these days instead of $500 revenue for each of these days. (4 points) If Jo opens the second truck, what is the opportunity cost of the first 30 days of operation? (4 points) If Jo does not open the second truck, what is the opportunity cost of operation? (2 points) If you were advising Jo, would you recommend opening the second truck or not? Why or why not
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