Declining Transport Rates as the Quantity Shipped Increases Represents

question 17

Multiple Choice

Declining transport rates as the quantity shipped increases represents:

• A)The Tapering Principle
• B)Economy of Distance
• C)Economy of Energy
• D)Economy of Scale

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Definitions:

Producer Surplus

The disparity between the minimum amount sellers are ready to take for a product or service and the actual price they get in the market.

Price Received

The amount of money paid to a seller or producer for a good or service, excluding any taxes, fees, or additional charges.

Deadweight Losses

A loss of economic efficiency that can occur when the equilibrium for a good or service is not achieved or is not achievable.

Deadweight Loss

The dip in economic performance due to the non-achievement or the impracticality of achieving the market balance for a good or service.