Quiz 4 and 5 Flashcards
1
Q
- There are 2 separate concepts in cost-of-service pricing, they are:
a. headhaul and backhaul
b. commodity and density
c. average cost and marginal cost
d. competition and direction of travel
A
c. average cost and marginal cost
2
Q
- The type of cost created from a situation where the production of one service necessarily entails the production of another service is known as:
a. common cost
b. separable unique cost
c. fixed universal cost
d. variable general cost
A
a. common cost
3
Q
- Which is correct using value-of-service pricing
a. the model is used to determine the lower limit of freight rates
b. the model considers the supply side of the transportation pricing function
c. the value of the product is considered to be irrelevant in the determination of the freight rate
d. the model considers the ability of the commodity to bear a charge
A
d. the model considers the ability of the commodity to bear a charge
4
Q
- A profit-maximizing oriented carrier will not set a price in the long-run that would:
a. reduce variable costs
b. increase fixed costs
c. increase customer satisfaction with services rendered
d. prohibit the movement of freight or passengers
A
d. prohibit the movement of freight or passengers
5
Q
- Price is a concept relating to how post-deregulation transportation firms determine and impose charges for their services. Which is a distinguishing feature of this concept of price?
a. the amount found in a Tariff Book as payment to a carrier for performing a transport service
b. a lawful charge imposed by a carrier on a commodity movement
c. a value or level that is determined based on prevailing market forces
d. a charge determined primarily by considering a carrier’s costs only
A
c. a value or level that is determined based on prevailing market forces
6
Q
- This type of rate applies to or from whole regions, rather than points within a region.
a. joint rate
b. group rate
c. incentive rate
d. local rate
A
b. group rate
