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

Inflation, how measure the inflation

how measure the inflation

Production process, Production Process: Production is a process that t...

Production Process: Production is a process that transforms factors of production or inputs into output of goods and services. Production may be classified into extraction, ma

Distinguish between economic growth and economic development, Question 1: ...

Question 1: (a) Describe the different forms that foreign aid may take. (b) Does foreign aid lead to economic growth? Discuss. Question 2: (a) Distinguish between ec

Find the elasticity of demand for a quantity, The demand curve for gasoline...

The demand curve for gasoline is P = 200 - 10Q. a.  Find the elasticity of demand for a quantity of 8. Does this number imply that quantity demanded is sensitive to price change

Optimization, Andrew has preference given by: u(x,y) = min{2x, 3y} The pri...

Andrew has preference given by: u(x,y) = min{2x, 3y} The price for good x and good y are identical and equal to 4. At his optimal consumption bundle he achieves a utility of 90. W

Periodic table blocks, I have to do a project on the blocks in periodic tab...

I have to do a project on the blocks in periodic tables. How specifically should I describe them? Should I describe each block''s characteristics, and if so, which ones? P.S. This

Multiplnat monopoly, P=140-4Q mc1=20+30q for plant 1 mc2=80+10q for plant 2...

P=140-4Q mc1=20+30q for plant 1 mc2=80+10q for plant 2 how many units should be produced by plant 1 and plant 2 to maximise profit for this monopoly?

Types of unemployment, Types of unemployment: Frictional Unemployment...

Types of unemployment: Frictional Unemployment: -It refers to unemployment caused by changes in individual labour markets.This is the type of unemployment resulting from peop

Integrability, explain about integrability problem

explain about integrability problem

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