A single-server food cart competes with several nearby food carts and experiences arrival of customers during an 8-hour period as shown: Customers would probably exhibit a high incidence of ________ during the 11 A.m.-1 p.m. and 4 p.m.-5 p.m. periods; to avoid this opportunity cost, the cart owner should __________

Question

A single-server food cart competes with several nearby food carts and experiences arrival of customers during an 8-hour period as shown:

Customers would probably exhibit a high incidence of ________ during the 11 A.m.-1 p.m. and 4 p.m.-5 p.m. periods; to avoid this opportunity cost, the cart owner should __________

Quizplus · Accepted Answer

Customers are likely to balk (refuse to join a queue) during the peak periods of 11 a.m. to 1 p.m. and 4 p.m. to 5 p.m. to avoid this opportunity cost, the cart owner should add another server during these peak periods to decrease customer waiting time and increase customer satisfaction. The other options such as offering specials, expanding menu or offering discounts may not necessarily address the issue of long waiting times for customers during peak periods.

A Single-Server Food Cart Competes with Several Nearby Food Carts