With a Single-Server Model, Increasing the Capital-To-Labor Ratio Will Most

question 37

Multiple Choice

With a single-server model, increasing the capital-to-labor ratio will most likely:

• A) increase the utilization of the server.
• B) have no effect on the operating characteristics because they are affected only by work-methods changes.
• C) decrease the probability that there are zero customers in the system at any time.
• D) decrease the average number of customers in the waiting line.

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Definitions:

Debt Repayment

The act of paying back money previously borrowed from a lender, typically according to a prearranged payment schedule.

Amortization

The systematic and rational allocation of the acquisition cost of an intangible asset over its useful life

Cash Inflow

Money coming into a business or an account, from various sources like sales, financing, or investment returns.