________ Put Many Small Shipments Together to Create a Single

question 188

Multiple Choice

________ put many small shipments together to create a single large shipment that can be transported more cost-efficiently to the final destination.

• A) Containerized shippers
• B) Freight consolidators
• C) Mixed merchandisers
• D) Freight forwarders

---

Definitions:

Cost Function

A mathematical relation that describes how the total cost of producing a good or service varies with the level of output.

Diseconomies of Scope

The phenomenon where a company’s costs increase as it produces more varied types of products or services, due to inefficiencies.

Returns to Scale

The rate at which output increases as inputs are increased proportionately.

Economies of Scope

Cost advantages companies experience when they increase the variety of products produced, as opposed to increasing the volume of a single product (economies of scale).