A Waiting-Line System That Meets the Assumptions of M/M/1 Has

question 69

Multiple Choice

A waiting-line system that meets the assumptions of M/M/1 has λ = 1, μ = 4. For this system, P_o is ________ and utilization is ________.

• A) 0.75; 0.25
• B) 0.80; .20
• C) -3; -4
• D) 3; 4
• E) none of these

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Definitions:

Isocost Line

An isocost line is a graphical representation in economics showing all possible combinations of inputs that result in the same cost of production.

Price of Capital

The cost incurred to use capital goods for production, often determined by interest rates and market demand.

Total Expenditures

The total amount of money spent by a firm or an individual on goods and services.

Price of Labor

The wage rate or compensation paid to employees for their work or services, determined by supply and demand in the labor market.