To Improve Package Delivery, One Change UPS Made Involved Taking

question 317

Multiple Choice

To improve package delivery, one change UPS made involved taking better account of weather forecasts to avoid delays in flying packages.This is an example of

• A)positive technological change.
• B)increasing marginal returns.
• C)a reduction in fixed costs.
• D)diseconomies of scale.

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Definitions:

Fixed Costs

Expenses that remain constant for a period of time irrespective of the level of outputs, like rent, salaries, and loan payments.

Break-even Volume

The quantity of sales needed for a product to generate revenue that matches the total costs, resulting in no profit or loss.

Variable Costs

Expenses that change in proportion to the activity of a business, such as costs for raw materials or production labor.

Fixed Costs

Costs that remain constant regardless of the amount of goods produced or sold, like lease payments or employee wages.