Which of the Following Statements About Canals in Early Nineteenth-Century

question 48

Multiple Choice

Which of the following statements about canals in early nineteenth-century America is NOT true?

• A) They linked the Atlantic coastal cities to the lakes and rivers of the interior.
• B) Most of them proved to be unprofitable.
• C) They could not compete successfully with railroads.
• D) Their construction was paid for through a combination of state funding and private investment.
• E) Spectacular canal boat accidents claimed many lives.

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Definitions:

Average Total Costs

The average cost per unit is calculated by dividing the entire production cost by the quantity of units produced.

Total Fixed Costs

The sum of all costs that remain constant in total amount regardless of changes in the level of production or output.

Total Cost

The combined financial outlay for producing goods or services, covering both unchanging and varying expenses.

Economies of Scale

Cost advantages that enterprises obtain due to their scale of operation, with cost per unit of output decreasing with increasing scale.