One of the Reasons Given for the Decline of the Passenger

question 18

Multiple Choice

One of the reasons given for the decline of the passenger rail industry in the United States is that the industry defined its mission as trains and not as transportation sources.The railroad industry failed to:

• A) define its mission in terms of the benefits its customers seek
• B) ignore the marketing concept of serving customer needs and wants
• C) realize "customers only want what they know"
• D) have a sales orientation
• E) empower the consumer

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Definitions:

Marginal Cost

The increment in overall expenditure that comes from the production of an extra unit of a product or service.

Competitive Market

A market structure characterized by many buyers and sellers, free entry and exit, and products that are similar enough to be considered substitutes.

Legislation Limits

Restrictions or caps established by laws or regulatory bodies that aim to control or regulate certain activities or behaviors.

Cost Function

A mathematical formula that describes the total cost of production as a function of the quantity of output produced.