A Small Diner Has One Employee and a Counter with Seating

question 2

Multiple Choice

A small diner has one employee and a counter with seating for 8 customers.The diner does not package food for takeout.Customers arrive at the diner at the rate of 20 per hour (Poisson distributed) .Service times are exponentially distributed and average 24 per hour.Customers that arrive when all seats are taken do not enter the diner.What is the average time a customer spends in the diner?

• A)3 minutes
• B)5.975 minutes
• C)6.44 minutes
• D)8.94 minutes

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Definitions:

Free Trade

An economic policy that allows imports and exports between countries with minimal or no tariffs, quotas, or prohibitions.

Comparative Advantage

The ability of an individual or country to produce a particular good or service at a lower marginal cost than others.

Production Possibilities

Various combinations of goods and services that can be produced within an economy given available resources and technology.

Economies Of Scale

The cost advantage achieved by producing goods in large quantities, hence reducing the cost per unit.