Why Does FedEx Use a Central Hub Airline Network, Rather

question 138

Essay

Why does FedEx use a central hub airline network, rather than a "point-to-point" network? Describe FedEx's approach to choosing its superhub.

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Definitions:

Tax Base

The tax base is the total amount of assets or revenue that a government can tax, including income, property, sales, and other valuables.

Marginal Tax Rate

The rate at which the next dollar of taxable income is taxed.

Proportional Tax

A tax system where the rate of taxation is fixed, meaning the tax rate stays the same regardless of the taxable amount or income.

Average Tax Rate

The portion of total income that is paid as tax, calculated by dividing the total tax amount by the taxable income.