How Is the Relevant Market Structure in Transportation Described

question 37

Multiple Choice

How is the Relevant Market Structure in transportation described?

• A) by comparing fixed costs with variable costs
• B) by determining all the areas which the carrier can serve effectively
• C) by generally describing all possible origin and destination points for each commodity
• D) by identifying the relevant market area for one commodity moving between two points

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Definitions:

Return On Investment (ROI)

Net operating income divided by average operating assets. It also equals margin multiplied by turnover.

Depreciation

The systematic allocation of the cost of an asset over its useful life.

Investment Center

A business unit within a company that is responsible for its own revenues, expenses, and asset investments, with its performance measured by its ability to generate income relative to its assets.

Minimum Required Return

The lowest acceptable return on an investment, based on risk tolerance and financial goals.