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

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 below:  
 
  
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

The graph shows a high arrival rate of customers during the 11 a.m.-1 p.m. and 4 p.m.-5 p.m. periods, indicating the possibility of balking (customers not buying due to long wait times) during these peak periods. To avoid this opportunity cost, the cart owner should add another server during peak periods to reduce wait times and increase customer satisfaction. Offering "2 for 1" specials or price discounts during slow periods (options A and C) may attract more customers during those periods but may not address the issue of peak periods. Expanding the menu (option B) may also not be effective in reducing wait times and addressing the issue of peak periods.

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