Consider an Espresso Stand with a Single Barista

question 54

Multiple Choice

Consider an espresso stand with a single barista.Customers arrive at 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 there are exactly 3 customers in the system is

• A)0.0000
• B)0.1024
• C)0.4096
• D)0.5120

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Definitions:

Total Utility

The total satisfaction or benefit obtained from consuming a particular quantity of goods or services.

Marginal Utility

Describes the additional satisfaction or usefulness obtained from consuming one more unit of a product or service.

Total Utility

The complete fulfillment experienced from the consumption of a specific overall amount of a product or service.

Consumer Surplus

The gap between what consumers are prepared and able to spend on a product or service and the actual sum they end up paying.