Which two factors have contributed to joint ownership of large-diameter pipelines?
A) high variable costs of ownership and low rates
B) economies of scale and high fixed costs of ownership
C) government regulation and development funds
D) rail competition and the growth of domestic water transport

Question

Quizplus · Accepted Answer

Joint ownership of large-diameter pipelines has been facilitated by economies of scale, where sharing the fixed costs and spreading them among multiple owners reduces costs for each individual owner. Additionally, the high fixed costs of maintaining and operating pipelines make joint ownership a more attractive option compared to individual ownership.

Which Two Factors Have Contributed to Joint Ownership of Large-Diameter