Question: Two one-barber shops sit side by side in Memorial Union. Each shop can hold a maximum of 5 people, and any potential customer who finds

Two one-barber shops sit side by side in Memorial Union. Each shop can hold a maximum of 5 people, and any potential customer who finds a shop full will not wait for a haircut. Barber 1 charges $18 per haircut and takes an average of 20 minutes to complete a haircut. Barber 2 charges $13 per haircut and takes 15 minutes to complete a haircut. On average, 12 potential customers arrive per hour at each barbershop. Of course, a potential customer becomes an actual customer if they find that the shop is not full. Assuming that inter-arrival and haircut times are exponential, which barber will earn more money? How much?

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related General Management Questions!