​Discuss the Importance of the Utilization Factor in a Queuing

question 26

Essay

​Discuss the importance of the utilization factor in a queuing system and the assumptions made about its value.

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Definitions:

Economic Profits

Profits calculated by subtracting both explicit and implicit costs from total revenues.

Explicit Costs

The direct payment made to others in the course of running a business, such as wages, rent, and materials.

Implicit Costs

Implicit costs are the opportunity costs associated with a company's use of internal resources that could have been utilized elsewhere, not directly paid out in cash.

Economic Costs

The total cost of choosing one action over another, including both explicit costs (direct outlays) and implicit costs (opportunity costs).