In the 20^th Century, Managers of Railroads Let Airlines, Barges

question 259

Multiple Choice

In the 20^th century, managers of railroads let airlines, barges, pipelines, and trucks take business away from them because their strategies were developed only for the railroad business, rather than a broader definition of the __________ business.

• A)transportation
• B)transcontinental shipping
• C)passenger travel
• D)product delivery
• E)bulk cargo

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Definitions:

Relative Price

The price of one good or service compared to the price of another, essentially showing the trade-off between the two items.

Menu Costs

Menu costs refer to the expenses incurred by firms in changing prices in response to market changes, including the physical costs of changing price tags and the costs of updating marketing materials.

High Inflation

A condition where the general price level in an economy increases rapidly over a period, eroding purchasing power.

Velocity

Velocity in economics refers to the speed at which money circulates within the economy, indicating how frequently units of currency are used to purchase domestically produced goods and services.