As the shipping distance increases:
A)Variable costs are spread over more miles.
B)The shipping costs per pound increase.
C)Economies of scale are achieved.
D)The cost per unit of distance decreases.

Question

Quizplus · Accepted Answer

As the shipping distance increases, the cost per unit of distance typically decreases due to economies of scale, where fixed costs are spread over a larger number of miles, reducing the average cost per mile.

As the Shipping Distance Increases