Which of the Following Descriptions About Waiting Line Models Is

question 59

Multiple Choice

Which of the following descriptions about waiting line models is best?

• A) They account for major events such as competitor actions.
• B) They account for the random, independent behaviour of many customers.
• C) They assume that each branch can give the highest expected payoff.
• D) They deal with the certainty and stability in demand.

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Definitions:

Profit-Maximizes

Strategies or actions by firms aimed at increasing their profits to the highest possible level.

Total Cost

The market value of the inputs a firm uses in production.

Marginal Cost

The supplementary cost that comes with the creation of one more unit of a product or service.

Perfectly Competitive

A market structure characterized by a large number of small firms, a homogeneous product, and free entry and exit, leading to price taking behavior.