Transit Time Via Water Transportation Is the Longest of the Four

question 45

Multiple Choice

Transit time via water transportation is the longest of the four primary modes commodities. This modal service disadvantage has to be traded-off against the low-cost to the shipper for the transport of commodities. This tradeoff usually makes water transport attractive for which commodities?

• A) automobiles and construction machinery
• B) large, bulky and oversized shipments
• C) basic raw materials
• D) inventory items

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Definitions:

Marginal Product

The additional output gained by adding one more unit of a specific input, while keeping other inputs constant.

Total Output

The total value of all goods and services produced in an economy over a specific time period.

Average Total Cost

The total cost of production divided by the quantity produced, incorporating both fixed and variable costs.

Average Fixed Cost

The constant costs of producing (which remain the same regardless of output volume) shared among the produced output units.