Assume That Customer Arrivals at a Ticket Counter Can Be

question 98

Multiple Choice

Assume that customer arrivals at a ticket counter can be modeled by a Poisson distribution. The average arrival rate is 12 customers per hour. What is the probability of zero arrivals in the next hour (to three decimal places) ?

• A) 1.000
• B) 0.002
• C) 0.000
• D) 0.012

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Definitions:

Natural Monopoly

A market condition where a single firm can supply a good or service to an entire market at a lower cost than what two or more companies could.

Least Cost

Refers to the most cost-effective method of producing a given level of output without sacrificing quality.

Horizontal Market

A market that meets a specific need across multiple industries, rather than being confined to a particular sector.

Natural Monopoly

A type of monopoly that arises due to high fixed or start-up costs associated with the business, making it efficient for only one provider to serve the entire market.