Coal- fired steam locomotives become more efficient for railroads relative to oil- burning diesel locomotives as:
A)the price of oil increases.
B)the price of coal increases.
C)railroad freight rates increase.
D)coal- fired steam locomotives become larger.

Question

Quizplus · Accepted Answer

As the price of oil increases, the relative cost advantage of using coal-fired steam locomotives over oil-burning diesel locomotives also increases. Coal is generally cheaper than oil, so as oil prices rise, the cost of using diesel locomotives becomes more expensive compared to coal-fired steam locomotives.

Coal- Fired Steam Locomotives Become More Efficient for Railroads Relative