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Why Would Someone Choose to Use Simulation to Analyze a Waiting

question 25

Essay

Why would someone choose to use simulation to analyze a waiting line problem rather than use a formula? What are the advantages and disadvantages of a simulation approach?


Definitions:

Profit Maximizing

The process of increasing the difference between total revenue and total cost to achieve the highest possible profit.

Marginal Revenue Product

The additional revenue generated by employing one more unit of a factor of production, keeping all other factors constant.

Wage Rate

The amount of money workers are paid per unit of time, usually specified in terms of an hour, representing compensation for labor services.

Employment

The condition of having paid work or being engaged in a productive activity.

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