A Firm Decides to Use a Less Expensive Mode of Transportation

question 16

Multiple Choice

A firm decides to use a less expensive mode of transportation like train,even though it is slower.This is an example of a

• A)cost-to-cost trade-off.
• B)modal trade-off.
• C)cost-to-service trade-off.
• D)None of the above

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Definitions:

Nonrival

A characteristic of a good whereby one person's consumption does not diminish the availability of that good for consumption by others.

Television Programs

Scheduled content broadcasted on television, including series, movies, news, and other forms of entertainment or information.

Exclusion

The act of denying someone's access to a particular resource or activity.

Common Resource

A type of good that is non-excludable and rivalrous, such as fish stocks in the ocean; it is available to all but can be depleted by excessive use.