Economies of scope in the trucking industry, Microeconomics

Assignment Help:

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. 


Related Discussions:- Economies of scope in the trucking industry

Externalities, What are externalities? Give an example of positive and nega...

What are externalities? Give an example of positive and negative externality and explain why the market outcomes are inefficient in the presence of externalities?

Shortage/surplus, Students at XSU cannot register for english classes. Is t...

Students at XSU cannot register for english classes. Is this a situation of shortage or surplus of classes? Explain. Also would you expect market forces to do to tuition?

Perform a one way anova, The Tastee Bakery Company supplies a bakery produc...

The Tastee Bakery Company supplies a bakery product to many supermarkets in a metropolitan area. The company wishes to study the effect of shelf display height employed by the supe

Gdp components, study on internet will impact on gdp

study on internet will impact on gdp

Canon, analyze Swot of Canon

analyze Swot of Canon

Theory, Explainbainlimitpricetheory

Explainbainlimitpricetheory

Equalibrian, Imagine a country where plane and train services between two m...

Imagine a country where plane and train services between two main cities are both provided by private companies, and, from a consumer perspective these services are viewed as subst

Economics, 4) The prevention of major swings in economic activity can be ha...

4) The prevention of major swings in economic activity can be handled most easily by the A. household sector B. business sector C. financial sector D. government sector Explain

ECON Worksheet, Deadline is 20 Hours... 1. A. Explain how one derives the...

Deadline is 20 Hours... 1. A. Explain how one derives the indifference curves from a 3-dimensional utility function. Draw a graph and explain. Which principle explains the concav

Macroeconomics, The Wealth of Nations of Modern Economies When the federal ...

The Wealth of Nations of Modern Economies When the federal government uses expenditures to stimulate the economy, it changes not only the present but the future as well. Question

Write Your Message!

Captcha
Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd