Consider an Espresso Stand with a Single Barista

question 29

Multiple Choice

Consider an espresso stand with a single barista.Customers arrive to the stand at the rate of 28 per hour according to a Poisson distribution.Service times are exponentially distributed with a service rate of 35 customers per hour.The probability that the server is busy is

• A)0.20
• B)0.60
• C)0.80
• D)1.00

---

Definitions:

Profit

The financial gain made in a transaction or operation, calculated as total revenues minus total costs.

Cartel

A group of independent market participants who collude to raise prices, limit supply or otherwise manipulate market conditions in their favor.

Quantity Effect

the change in the quantity of goods sold or consumed as a result of a change in price, holding other factors constant.

Profit

The financial gain or surplus remaining after all operating expenses, taxes, and costs have been subtracted from total revenue.