Traffic Intensity Is a Very Useful Measure Of

question 20

Multiple Choice

Traffic intensity is a very useful measure of:

• A) whether the system is stable or not 
• B) the number of customers in a system 
• C) the distribution of interarrival times 
• D) the amount of congestion in the system

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Definitions:

Marginal Cost

The additional cost incurred from producing one more unit of a good or service.

Average Total Cost

A firm’s total cost divided by output (the quantity of product produced); equal to average fixed cost plus average variable cost.

Economies of Scale

Cost advantages that a business obtains due to expansion, leading to a reduction in the average cost per unit through increased production.

Diseconomies of Scale

The situation in which a business grows to a point where the costs per unit increase, opposed to saving costs, often due to managerial inefficiencies or complexity.