3 ms·
> See the demand is pretty inflexible, and only lasts say 7-9AM This is the base hypothesis that doesn’t match semi-realistic situations. As long as the deman
by hrktb 6y ago
> See the demand is pretty inflexible, and only lasts say 7-9AM
This is the base hypothesis that doesn’t match semi-realistic situations.
As long as the demand exceeds your lining capacity (let’s say no more than 20 cars because of sheer space constraints, or when the last in queue would be served past 9AM, which is an actually inflexible limit), consuming the queue twice or three times as fast would bring more revenue.
It stops being interesting expanding mostly when your processing ability match the demand or it the cost/benefit balance changes (e.g. you have to buy the surrounding buildings)
- JoeAltmaier 6y agoI don't think so. Its not a line limit, its a mean length issue. If you spend more and empty the line, then you haven't made a dime more. In fact if you spent money doing that, you lost money. That's the issue - if the customer pool is inflexible, the rational thing is to raise prices until you hit that limit. Now if the line is self-limiting (folks wont queue if it 'looks too long') then there's something to that.