Compared to Railroads and Trucks, the Biggest Advantage Offered by Air

question 236

Multiple Choice

Compared to railroads and trucks, the biggest advantage offered by air transport is that it is

• A) faster.
• B) more dependable.
• C) lower in cost.
• D) able to reach more destinations.

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Definitions:

Fixed Cost

A cost that does not vary with the level of output or sales, such as rent, salaries, and insurance premiums.

Overhead Cost

Indirect expenses related to the operation of a business, such as rent, utilities, and administrative salaries, that are not directly tied to the production of goods or services.

Total Revenue

The complete amount of income generated by a business from its sales or services before any costs or expenses are subtracted.

Marginal Costs

The cost added by producing one additional unit of a product or service.