The Most Important Factors in Determining an Optimal Mode of Transportation

question 36

Multiple Choice

The most important factors in determining an optimal mode of transportation for foreign markets are the value-to-volume ratio, perishability of the product, and:

• A)the cost of transportation.
• B)intermodal ratio.
• C)total cost ratio to inventory and warehousing expense.
• D)the cost of insurance.
• E)the distance to speed relationship.

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Definitions:

Marginal Product

The increase in output that is produced by adding one more unit of a particular input while holding all other inputs constant.

Total Output

The complete amount of goods or services produced by an economy, sector, or organization over a certain period.

Least Skilled Worker

An employee who possesses the minimal skills required for a job, often receiving the lowest wages.

MP

Represents marginal productivity, which is the additional output derived from the use of one more unit of a variable input, holding all other inputs constant.