A Store Open 24 Hours Per Day Is Interested in Determining

question 44

Essay

A store open 24 hours per day is interested in determining store traffic.It found that customers arrive uniformly at the rate of 10 customers per hour.The store has a single worker to process customers.The worker takes an average of 5 minutes to process a customer.If we assume that every customer must be processed,what is the average number of customers in the store?

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Definitions:

Long-run Average Total Cost

Represents the average cost per unit of output in the long-term, where all inputs are variable, allowing for the adjustment of all factors of production.

Minimum Efficient Scale

The smallest amount of production a company can achieve while still taking full advantage of economies of scale in terms of lowering the average cost per unit.

Long-run Average Total Cost

The average cost per unit of output over the long term, where all inputs are considered variable.

Output Q₀

The quantity of goods or services produced in a given period of time, denoted as Q₀ to specify a particular amount.