Which is correct regarding tapering rates?
A) the principle is based on the carrier's ability to spread certain fixed cost over a greater number of miles
B) transportation rates increase with distance directly in proportion to the distance
C) in a one-source,one-market situation,the impact of the tapering rate will be to pull the location toward a point midway between the source and the market
D) Tapering rates are overexaggerated.

Question

Quizplus · Accepted Answer

Tapering rates are based on the carrier's ability to spread certain fixed costs, such as equipment and driver costs, over a greater number of miles. As the distance traveled increases, the rate per mile decreases or tapers.

Answer: C
 In a one-source, one-market situation, the tapering rate will pull the location of the shipment towards a midpoint between the source and the market. This midpoint represents the optimal location for the carrier to maximize their revenue and minimize cost.

Therefore, the correct choices are A and C.

Which Is Correct Regarding Tapering Rates