Transportation 2 Flashcards

1
Q

Transport Economics
Distance:
curve?

A

Distance is a major influence on transportation cost since it directly contributes to variable cost, such as labour, fuel, and maintenance

This is reflected by the cost-distance curve. The cost curve does not begin at the origin because there are fixed costs associated with shipment pickup and delivery regardless of distance. It increases at a decreasing rate as a function of distance

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