Papagayo Rum Is Produced on the Island of the Same

question 52

Essay

Papagayo Rum is produced on the island of the same name, and its entire output is exported by ship.There is only one pier capable of accommodating the freighters, which arrive empty, are then loaded with their cargo of rum, and then depart.The pier may service at most two ships at a time.
Cargo ships arrive randomly according to the following distribution: $\begin{array} { c c c } \text { Number of Ships per Day } & \text { Probability } \\0 & .10 & \\1 & .20 \\2 & .40 \\3 & .20 \\4 & .10\end{array}$
If the pier is occupied by two freighters, a subsequent arrival
drops anchor in the harbor and awaits its turn.The time required
to load a ship is also variable, depending on the vessel's capacity
and configuration as well as available dockside manpower and
equipment.
$\begin{array} { c c } \text { Loading Time in Days } & \text { Probability } \\.5 & .35 \\1 & .45 \\1.5 & .15 \\2 & .05\end{array}$
Do a ten day fixed time simulation and estimate the average number of ships waiting at anchor for an available pierside berth and the average amount of time a ship must wait at anchor.

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Definitions:

Demand Curve

A chart that displays the connection between a product's price and the amount of the product buyers are prepared and able to buy at different price levels.

Marginal Cost Curve

A graphical representation showing how the cost of producing one additional unit of a good changes as the production volume changes.

Monopoly Market

A market structure characterized by a single seller who has exclusive control over the supply of a product or service, and where there are high barriers to entry for other firms.

Perfectly Competitive

A market structure characterized by many sellers offering identical products, free entry and exit, and full information, leading to price taking behavior.