Which of the Following Descriptions About Waiting Line Models Is

question 2

Multiple Choice

Which of the following descriptions about waiting line models is best?

• A) They account for the random, independent behaviour of many customers.
• B) They deal with the certainty and stability in demand.
• C) They account for major events such as competitor actions.
• D) They assume that each branch can give the highest expected payoff.

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Definitions:

Marginal Cost Curve

A graphical representation that shows how the cost of producing one additional unit of a good changes as the level of production is varied.

Supply Curve

A graph showing the relationship between the price of a good and the quantity of the good that suppliers are willing to offer for sale.

Constant Cost Industry

An industry in which the input prices and the costs of production do not change as the industry's output changes.

Downward Sloping

Describes a curve or line on a graph that shows a decrease in one variable as another variable increases, typical of demand curves in economics.