Consider an airport where taxis and customers arrive


Consider an airport where taxis and customers arrive (exponential interarrival times) with respective rates of one and two per minute. No matter how many other taxis are present, a taxi will wait. If an arriving customer does not find a taxi, the customer immediately leaves.

a. Model this system as an MM1 queue.

b. Find the average number of taxis that are waiting for a customer.

c. Suppose all customers who use a taxi pay a $10 fare. During a typical hour, how much revenue will the taxis receive?

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Accounting Basics: Consider an airport where taxis and customers arrive
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