Consider an Espresso Stand with a Single Baristro

question 58

Multiple Choice

Consider an espresso stand with a single baristro.Customers arrive at the rate of 20 per hour according to a Poisson distribution.Service times are exponentially distributed with a mean service time of 2 minutes per customer.What is the service rate per hour for the espresso stand?

• A)30 customers
• B)20 customers
• C)15 customers
• D)2 customers

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Definitions:

Creative Destruction

A concept in economics that describes the process by which new innovations replace outdated technologies and ideas, driving economic progress.

Concentrated Industries

Industries where a small number of firms dominate the market share, potentially leading to reduced competition and higher prices for consumers.

Innovative Firms

Companies that pioneer new ideas, technologies, or methods, leading to novel products or services and contributing to economic growth and competitiveness.

R&D Spending

Expenditures dedicated to research and development activities with the aim of creating new technologies, products, or processes.