Economies of scope in the trucking industry, Microeconomics

Economies of Scope in the Trucking Industry

* Questions:

- Economies of Scope

- Are large-scale, direct hauls cheaper and more profitable than individual hauls by small trucks?

- Are there cost advantages from operating direct and indirect hauls both?

* Empirical Findings

- An analysis of 105 trucking firms examined 4 distinct outputs.

- Short hauls with the partial loads

- Intermediate hauls with the partial loads

- Long hauls with the partial loads

-  Hauls with entire loads

- Results
-  SC = 1.576 for reasonably large firm

-  SC = 0.104 for very large firms

- Interpretation

-  Combining partial loads at the intermediate location lowers cost management difficulties with very large firms. 

Posted Date: 10/12/2012 3:55:57 AM | Location : United States







Related Discussions:- Economies of scope in the trucking industry, Assignment Help, Ask Question on Economies of scope in the trucking industry, Get Answer, Expert's Help, Economies of scope in the trucking industry Discussions

Write discussion on Economies of scope in the trucking industry
Your posts are moderated
Related Questions
Exchange Rate Policy: After the second amendment to the Articles of Agreement of IMF which came into effect on April 1, 1978, every member is free to choose its own exchange r

For each of following production functions, comment on the ability to substitute capital for labor. Note that Q, K, and L denote output, capital, and labor respectively. A: B

A monopolist faces the following demand function for its product: Q = 45 - 5P The fixed costs of the monopolist are $12 and the variable costs are $5 per unit. a) What are the

Ask quesIn your own words describe how a market would adjust in situations of: a) Excess Demand b) Excess Supply c) Equilibrium As a follow up you might think about what effects


Is economics an art or a science

Research has revealed the following information about the market for Thomas chocolates; the demand schedule can be represented by the equation Qd=850 @20 dollar. The supply schedul

explain two theories of economic rent

do you give solutions