Question: Two one-man barber shops sit side by side in Dunkirk Square. Each can hold a maximum of 4 people (c=4), and any potential customer who
Two one-man barber shops sit side by side in Dunkirk Square. Each can hold a maximum of 4 people (c=4), and any potential customer who finds a shop full will not wait for a haircut.
Barber 1 charges $11 per haircut and takes an average of 12 minutes to complete a haircut. Barber 2 charges $5 per haircut and takes an average of 6 minutes to complete a haircut. An average of 10 potential customers per hour arrive at each barber shop. Of course, a potential customer becomes an actual customer only if he finds that the shop is not full. Assuming that interarrival times and haircut times are exponential, which barber will earn more money? (Find the revenue per hour and compare)
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