A Small Popular Restaurant at an Interstate Truck Stop Provides

question 45

Multiple Choice

A small popular restaurant at an interstate truck stop provides priority service to truckers. The restaurant has ten tables where customers may be seated. The service time averages 40 minutes once a party is seated. The customer arrival rate is 12 parties per hour, with the parties being equally divided between truckers and non-truckers.
On average, how many parties of non-truckers are waiting to be seated?

• A) 0.27.
• B) 0.52.
• C) 0.88.
• D) 1.36.
• E) 1.75.

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Definitions:

Cartel

Market in which some or all firms explicitly collude, coordinating prices and output levels to maximize joint profits.

Price Strategies

Techniques used by companies to price their products or services with a view to maximizing profits or market share.

Marginal Revenue Function

The rate at which total revenue changes with respect to the output quantity change.

Marginal Costs

The added cost that comes from producing an additional unit of a product or service.