A Single Bay Car Wash with an Exponential Arrival Rate

question 43

Multiple Choice

A single bay car wash with an exponential arrival rate and service time has cars arriving an average of 10 minutes apart,and an average service time of 4 minutes The utilization factor is:

• A)0 24
• B)0 4
• C)0 67
• D)2 5
• E)None of the above

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Definitions:

Derived Demand

Defines the demand for a good or service that results from the demand for another good or service.

Equilibrium Wage

The wage rate at which the quantity of labor supplied equals the quantity of labor demanded.

Labor Demand Curve

A graphical representation showing the relationship between the wage rate and the quantity of labor that employers are willing to hire.

Purely Competitive Seller

A seller operating in a market where goods are homogeneous, and there are no barriers to entry, allowing for many competitors.