Motor carriers are characterized by _____ variable costs, while rail carriers have comparatively _____ fixed costs.
A)higher….high
B)lower….high
C)higher….low
D)lower….low
E)There is no difference in variable and fixed costing between motor and rail carriers.

Question

Quizplus · Accepted Answer

Motor carriers typically have higher variable costs due to expenses like fuel, maintenance, and labor that vary with the amount of cargo transported. Rail carriers, on the other hand, have high fixed costs associated with infrastructure like tracks and terminals, which do not vary significantly with the volume of cargo.

Motor Carriers Are Characterized by _____ Variable Costs, While Rail