Increasing table capacity has further reduced customer wait time and increased profits, but the numbers of lost sales have also increased. In the final scenario, the average waiting time is now 3.45 minutes and the average line length is 2.68. Mario earned a profit of $2,061, but lost sales worth up to $720. After the implementation of the new technology but before the acquisition of the additional space, the average waiting time in the restaurant was 5.11 minutes and the average line length was 2.3. In other words, line length increased after the expansion into the Cream Puffs space. Because of the expanded seating capacity, wait time decreased, but the decrease in wait time was relatively minimal.

This indicates a frequent problem with a 'learning curve' theory -- eventually improvements 'peter out.' The economic law of marginal utility suggests that adding to production facilities results in less and less of...
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