Use the Information Below to Answer the Following Question(s)

question 3

Multiple Choice

Use the information below to answer the following question(s) .
A bank is opening a new location in a business district.They have to determine how many teller windows to have open during the busy lunchtime hour.The demand during this hour is forecast to be normally distributed with a mean of 23 customers and a standard deviation of 10 customers.The average business revenue generated from each customer is $25 and each customer takes an average of 5 minutes to be served.Tellers are paid an hourly wage of $20.
-What is the cost of insufficient capacity (i.e.insufficient number of teller windows open) (CU) ?

• A)$15.67
• B)$23.33
• C)$25
• D)$32.33

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Definitions:

Trade Restrictions

Measures imposed by governments to control the import and export of goods and services with the intention of protecting domestic industries, which can include tariffs, quotas, and other barriers.

Efficiency Argument

The principle that resources should be allocated in a way that maximizes the productivity or welfare of a community or economy.

Jobs Argument

A perspective or argument centered on the impacts of economic policies or business decisions on employment levels.

Infant-Industry

An economic rationale for trade protectionism arguing that new industries need to be shielded from international competition to allow them to grow and become competitive.