Which best characterizes the short-run cost structure of the railroads?
A) low variable costs, high direct separable costs
B) low fixed costs, low variable costs
C) low joint costs, high separable costs
D) large proportion of indirect fixed costs

Question

Quizplus · Accepted Answer

Railroads typically have high fixed costs due to infrastructure and equipment, which are indirect and not easily separable.

Which Best Characterizes the Short-Run Cost Structure of the Railroads