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
what is Scitovsky Contour ?

Calculate the cross-price elasticity of demand between computers and printers, where a 10 percent decrease in the price of computers results in a 15 percent increase in the quantit

Which of these will be included in US GDP for 2005? a) A car produced in Japan in 2005 and sold in the US in 2005 b) A car produced in the US in 2004 and sold in Japan in 2005 c) A

elasticity of demand of a product in different market forms such as perfect competition, monoply etc.

#• The price of a laptop increases by 20% and there is a 40% drop in the quantity demanded. • The price of a pack of cigarettes increases by 10% and there is a 5% drop in the quan

Q. What is working of world Bank? An international financial organization formed after World War II and based in Washington D.C. Its supposed purpose is to promote economic dev

(a) Differentiate between a  command economic system and a laissez-faire. (b) Assess to what extent it is advantageous for an economy when it moves from a controlled to a free-e

Problem 1: i) How might unemployment arise? ii) Critically explain how fiscal policy can be used to reduce the unemployment rate in an economy. iii) ‘'Inflation always

Derivation of compensated demand curve:  Hicksian compensated demand function for x 1 is given by x 1 =x 1 (p 1 , p 2 , U), where Hicksian compensated demand curve for a good

Labour Supply:Total number of workers available and willing to work in a paid position; generally measured by the labour force(even though the labour force usually excludes many wo