Symbol u

The passage around this formula

The arithmetic is simple once both prices are in hand, and generalizes across any reserved-capacity product structured this way. Let $P_r$ be the reserved capacity’s price per hour, $Q_{\max}$ the maximum throughput it sustains per hour at full utilization, and $c_{\mathrm{od}}$ the effective on-demand cost of the equivalent work. At actual utilization u , the effective cost per unit under reservation is $P_r$ / (u \, $Q_{\max}$) , and reservation wins exactly when

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