Business Degree Certification Practice Test

Generally, what happens to service costs and waiting costs as the number of servers in a waiting line system increases?

1. Service cost increases, waiting cost decreases

2. Service cost decreases, waiting cost increases

3. Both service cost and waiting cost increase

4. Both service cost and waiting cost decrease

The correct answer is: Service cost increases, waiting cost decreases

The correct response highlights the relationship between the number of servers in a waiting line system and the associated costs. As the number of servers increases, service costs tend to rise because more resources (servers) are employed to handle customer requests. This represents an increase in operational expenses related to staffing. Conversely, the waiting cost typically diminishes when more servers are added. Waiting costs can be understood as the expenses associated with the time customers spend waiting for service. With additional servers available, customers are likely to be served more quickly, thereby reducing the total wait time and the cost incurred for that waiting period. By understanding the balance between increased service costs due to more servers and decreased waiting costs resulting from improved service speed, it becomes clear why the chosen answer reflects the dynamics of a waiting line system accurately.