Consider an airport where taxis and customers arrive (exponential interarrival times) with respective rates of 1 and 2 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 M/M/1 queue. (Hint: Think of the taxis as the “customers.”)
b. Find the average number of taxis that are waiting for a customer.
c. Suppose all customers who use a taxi pay a $2 fare. During a typical hour, how much revenue will the taxis receive?
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