Table 12-4 the Sentient Car Wash in Luther Knows She Is in Is

question 54

Multiple Choice

Table 12-4
The sentient car wash in Luther knows she is in for a busy day when dawn breaks on a gorgeous spring morning.She is capable of washing a car every four minutes, and by the looks of things, it is reasonable to expect a steady stream of twelve cars per hour arriving.Because she is fully automatic, she knows that the four-minute estimate is accurate and invariant.She values her time at $10 per hour.Yes, it seems low, but as a single bay car wash, there are few other jobs in town she is qualified for.(We won't get into her unsuccessful turn at the beauty salon.) She estimates that customer time can be valued at $15 per hour.
-According to Table 12-4, what is the total number of cars in the system?

• A)2.40
• B)2.75
• C)3.10
• D)3.45

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Definitions:

Interest Rate

The proportion of a total amount of money levied for borrowing it, usually shown as an annual rate percentage.

Loanable Funds Curve

A graphical representation that shows the relationship between the interest rate and the quantity of loanable funds supplied and demanded.

Interest Rate

The cost incurred by a borrower, calculated as a percentage of the principal, for borrowing assets from a lender.

Loanable Funds

The money available in the financial system for lending to individuals and businesses, depending on the savings rate and monetary policies.