How is the Relevant Market Structure in transportation described?
A) by comparing fixed costs with variable costs
B) by determining all the areas which the carrier can serve effectively
C) by generally describing all possible origin and destination points for each commodity
D) by identifying the relevant market area for one commodity moving between two points

Question

Quizplus · Accepted Answer

The relevant market structure in transportation is described by identifying the relevant market area for one commodity moving between two points. This involves analyzing the competition, pricing strategies, freight volumes, and operating costs for a particular commodity moving between specific origin and destination points. This allows carriers to effectively compete and provide their services within a specific market segment. Option A focuses on costs, while Option B and C are too general and do not specifically address the market structure of transportation. Therefore, the best choice is D.

How Is the Relevant Market Structure in Transportation Described