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
Neutrality: Bureaucracy is apolitical and neutral. Prof. Frocderich mentions the following features of bureaucracy: (i) differentiation of functions, (ii) qualifications for o


The price of a laptop increases by 20% and there is a 40% drop in the quantity demanded.

Diseconomies of Scale A rises in a firm's cost of producing an additional unit as all another factors of production rising. Diseconomies of scale can be caused by poor and ine

Economic profit and Economic loss: Economic profit is the excess if total revenue over total cost when the latter includes both explicit and implicit costs. It is the type o

what is fixed and variable inputs with more explanation

Determinants of Private Demand - Ability to Pay In a developing country like India, of all the factors determining investments in education, the most important factor is the ‘

Risk Averse:   -  A person who prefers certain given income to risky income with same expected value. - A person is careful risk averse if they have a diminishing marginal ut

Suppose the price of printing paper for digital cameras has recently risen by 10 percent due to an increase in the cost of materials used in the finish for the paper. As a result,

Derived demand and Demand schedule: D erived demand is where the demand for a final product leads to the demand for a second product which is used to produce this final p