A Waiting Line Model Meeting the Assumptions of M/M/1 Has

question 97

Multiple Choice

A waiting line model meeting the assumptions of M/M/1 has an arrival rate of 2 per hour and a service rate of 6 per hour; the utilization factor for the system is approximately

• A) 0.25
• B) 0.33
• C) 0.50
• D) 0.67
• E) 3.00

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Definitions:

Marginal Revenue

The additional revenue that a business earns from selling one more unit of a good or service.

Market Price

The ongoing cost at which an asset or service is available for buying or selling in a specific market.

Microchips

Small semiconductor devices that contain an integrated circuit, used in various electronic applications.

Price Effect

The impact on consumer demand and market supply when the price of a product changes, influencing the quantity bought and sold.