Published equation contexts
Why this formula appears here
The arithmetic is simple once both prices are in hand, and generalizes across any reserved-capacity product structured this way. Let be the reserved capacity’s price per hour, the maximum throughput it sustains per hour at full utilization, and the effective on-demand cost of the equivalent work. At actual utilization u , the effective cost per unit under reservation is / (u \, ) , and reservation wins exactly when
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Symbol u
u is a part of this expression. Its role is fixed by the surrounding article and by the operations shown in the formula.
Read this term in its guide →Symbol Q_max
the maximum throughput it sustains per hour at full utilization.
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Equation 16 · Inference Economics
AI Inference Economics in Practice: An Advanced Technical Guide
This mathematical expression combines the displayed quantities; its precise role follows from the surrounding article text.
The arithmetic is simple once both prices are in hand, and generalizes across any reserved-capacity product structured this way. Let be the reserved capacity’s price per hour, the maximum throughput it sustains per hour at full utilization, and the effective on-demand cost of the equivalent work. At actual utilization u , the effective cost per unit under reservation is / (u \, ) , and reservation wins exactly when
Meanings in this article
- : the reserved capacity’s price per hour.
- : the maximum throughput it sustains per hour at full utilization.