In the long run, if service capacity is inadequate for the arrival rate, one of the following will likely occur:
A) servers will slow down.
B) customers will demand less.
C) reneging will occur.
D) prices will be increased.

Question

Quizplus · Accepted Answer

When service capacity is inadequate for the arrival rate, reneging is likely to occur as customers become frustrated with the long wait times and leave the queue before being served. This can result in lost revenue for the service provider. Slowing down servers or demanding less from customers will not solve the root problem of the inadequate service capacity. Prices may be increased in response to increased demand, but this is not a guaranteed or immediate solution to address the issue of inadequate service capacity.

In the Long Run, If Service Capacity Is Inadequate for the Arrival