Exhibit 12-4 Consider a Fast-Food Restaurant Where Customers Arrive at a Poisson

question 16

Essay

Exhibit 12-4
Consider a fast-food restaurant where customers arrive at a Poisson rate of 100 per hour. Four equally capable servers work at the restaurant during a typical hour of operation. Each employee takes, on average, 2 minutes to serve a customer, and service times are exponentially distributed. Customers who arrive and find all 4 servers busy join a single queue and are then served in first-come-first-served fashion.
-Refer to Exhibit 12-4.Use the M/M/s template to find the expected number of busy servers,and the expected fraction of time each server is busy

---

Definitions:

Short Run

A period in economics during which at least one factor of production is fixed, affecting production capabilities.

Long Run

A period in which all factors of production and costs are variable, allowing for full adjustment to changes in economic conditions.

Average Cost

The total cost of production divided by the number of units produced, providing a measure of the cost per unit of output.

Total Costs

The complete sum of all expenses, direct and indirect, incurred in the production of goods or services.