In General,as the Number of Servers in a Waiting Line

question 38

Multiple Choice

In general,as the number of servers in a waiting line system increases,

• A)service cost increases and waiting cost decreases.
• B)service cost decreases and waiting cost increases.
• C)both service cost and waiting cost increase.
• D)both service cost and waiting cost decrease.

---

Definitions:

Equilibrium Quantity

The amount of products or services that are available and sought after at the market's balance price.

Interest Rate

The percent of principal charged by the lender for the use of its money or the rate earned on deposits.

Loanable Funds

The funds available for borrowing in the financial markets, derived from the savings of individuals and institutions.

Price Floor

A price floor set by a government or an organization, establishing the minimum price that can be charged for a good, service, or resource.