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Two coffee shops located across the street from each other decided to merge by moving all their employees and equipment (coffee machines, tables, chairs, etc)

Two coffee shops located across the street from each other decided to merge by moving all their employees and equipment (coffee machines, tables, chairs, etc) into a larger shop in the same location. Their purpose was to pool their resources and thus reduce waiting time for customers. What will be the impact of this merger?

  • A. Pooling servers will reduce the customers' average waiting time.
  • B. The larger location will increase total demand, leading to longer average waiting time.
  • C. Some customers will find crossing the street inconvenient, decreasing demand, leading to shorter waiting time.
  • D. Both (a) and (b).
  • E. All of (a), (b) and (c).

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