Little's Flow Equations

question 23

Multiple Choice

Little's flow equations

• A) require Poisson and exponential assumptions.
• B) are applicable to any waiting line model.
• C) require independent calculation of W, L, W_q, and L_q.
• D) All of the alternatives are correct.

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Definitions:

Supply

The complete quantity of a product or service that can be bought at a particular price point.

Price Floor

A legally established minimum price for a good, or service. Normally set at a price above the equilibrium price.

Competitive Market

A market structure characterized by a large number of buyers and sellers, free entry and exit, and a high level of competition.

Persistent Shortages

An economic condition where the demand for a good or service consistently exceeds its supply, often due to factors like price controls, causing prolonged scarcity.